R.J. Reynolds Tobacco Co v. Carreras Ltd

Read the full judgment text of CACV 37/1971 on BabelCite. This Court of Appeal judgment was delivered on 22 December 1971.

1. From time to time the appellants have registered various trade marks in Hong Kong in respect of manufactured tobacco products (class 34) which, of course, includes cigarettes. The first of these was no.58 of 1911 under which they registered The words "BLACK CAT" per se. Later registrations were of composite marks consisting of such things as a representation of a black cat coupled with the words BLACK CAT and a representation of three cats coupled with the words "THREE CATS".

Case No.CACV 37/1971
Court
Court of Appeal
Date22 Dec 1971
Judge
Case Document
100%Judiciary

CACV000037/1971

IN THE SUPREME COURT OF HONG KONG

APPELLATE JURISDICTION

CIVIL APPEAL NO. 37 OF 1971

(On appeal from a Decision of the Registrar of Trade Marks)

IN THE MATTER OF THE TRADE MARKS ORDINANCE CAP 43 OF THE LAWS OF HONG KONG
AND
IN THE MATTER OF AN OPPOSITION BY CARRERAS LIMITED TO APPLICATION NO.348/1964 BY R.J. REYNOLDS TOBACCO COMPANY TO REGISTER A TRADE MARK

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BETWEEN
R.J. REYNOLDS TOBACCO COMPANY Applicant
(Respondent)
and
CARRERAS LIMITED Opponent
(Appellant)

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Coram: Hon. Blair-Kerr, S.P.J. in Court

Date of Judgment: 22 December 1971

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JUDGMENT

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1. From time to time the appellants have registered various trade marks in Hong Kong in respect of manufactured tobacco products (class 34) which, of course, includes cigarettes. The first of these was no.58 of 1911 under which they registered The words "BLACK CAT" per se. Later registrations were of composite marks consisting of such things as a representation of a black cat coupled with the words BLACK CAT and a representation of three cats coupled with the words "THREE CATS".

2. In 1951 the appellants registered another trade mark (no.653 of 1951). This comprises a label in the centre of which appears an oval which occupies the whole of the centre of the label, and within which are the word and letter "Craven 'A'", and immediately above the oval, there is a representation of a cat's head surmounted on a scroll which contains, in small letters, the words "TRADE MARK". This mark is not subject to any colour limitation although it is apparently used in the colours red, white, and gold, and the cat's head is black.

3. In 1962 the appellants registered another trade mark (no.1381 of 1962). Neither the words BLACK CAT nor the representation of a cat's head appear on this mark as registered. The mark comprises a label which is in fact a cardboard carton in which Craven 'A' cigarettes are sold, opened out and laid flat. Looking at this carton as sold, the top one third of the front of the carton is red and written thereon are the words "Long Size Filter" in white lettering and the figures "20" in gold lettering. Along the bottom border of this portion there runs a thin gold line. The lower two-thirds of the front of the carton is white with a large oval in the centre, coloured red, and around the oval there is a thin gold border. The oval contains the word mark "Craven 'A'" written in white letters. On one side of the carton there appears another small red oval of the same description and containing the same word trade mark viz. "Craven 'A'". On the other side there appears the word trade mark "Craven 'A'". The top of the carton is red with the word mark "Craven 'A'" thereon in white lettering. On the bottom of the carton there is an oval device of the same description as the oval devices on the front and side i.e. it bears the word trade mark "Craven 'A'". As regards the back of the carton, the top portion is red with the word mark "Craven 'A'" in white lettering. The remainder of the carton is white. Printed thereon are words extolling the virtues of Craven 'A' cigarettes and stating that these cigarettes were named after the 3rd Earl of Craven.

4. The certificate of registration of no.1381 of 1962 reads:-

"This trade mark is limited to the colours red, white, and gold as shown in the specimen affixed to the form of application for registration:"

5. Trade mark no.653 of 1951 was registered in association with trade mark no.58 of 1911 and other marks registered on dates subsequent to 1911 but prior to 1951. Trade mark no.1381 of 1962 was registered in association with trade mark no.653 of 1951 and certain other marks registered both prior, and subsequent, to 1951.

6. The cartons in which Craven 'A' cigarettes are sold vary in certain respects. Trade mark no.653 of 1951 is used on the front of one carton. The words "Craven 'A'" are in black print. The oval device is white; it is surrounded by a gold band; and, immediately above the oval, there is the representation of the cat's head (black in colour) surmounted on a scroll which contains the words "TRADE MARK". Apart from the trade mark (no.653 of 1951) the whole of the front of the carton is red; and written thereon are the words "Cork Tipped Virginia Cigarettes".

7. Then, there is another carton which consists of trade mark no.1381 of 1962, except that the words "Filter King Size" appear in place of words "Long Size Filter". It is not known whether any of these cartons are sold without the representation of the cat's head. As I have said, the cat's head forms no part of trade mark no.1381 of 1962. But in an affidavit filed on 24th April 1970, the former Hong Kong manager of the appellants has exhibited a specimen of a carton which, according to him, has been used by the appellants in Hong Kong "from about the end of 1961 or early 1962 down to the present time". This carton is basically the registered trade mark 1381 of 1962 except for the words "Filter King Size" and "King Size" in place of the words "Long Size Filter" and "Long Size"; but, more important, on the back of the carton there is a representation of a cat's head (black colour) superimposed on the words "Trade Mark".

8. In the same affidavit the appellants' manager has exhibited a carton which, he says, the appellants used between 1958 and 1961 for the sale of "Filter-Tip-Long Size" Craven 'A' cigarettes. On the back of this carton there appears a representation of the cat's head in black above the words "TRADE MARK".

9. From all this, it is far from clear whether any Craven 'A' cigarettes are sold today in cartons which do not have the cat's head either on the front or the back. But, ordinarily it is the front of a cigarette carton which is visible to purchasers; and the hearing before the Registrar was conducted on the basis that Craven 'A' King Size Filter cigarettes are being sold in cartons similar in all essentials to trade mark no.1381 of 1962.

10. However, there was also undisputed evidence that cartons bearing the trade mark no.653 of 1951 (white oval, black lettering and gold band round the oval) and cartons, the front of which at least corresponds to trade mark no.1381 of 1962 (top one-third red, bottom two-thirds white with red oval, white lettering and gold band round the oval) are being sold "concurrently and side by side" in Hong Kong.

11. In 1963 the respondents registered the word "TEMPO" as a trade mark in respect of manufactured tobacco products. It is trade mark no.988 of 1963. On 3rd April 1964, they filed an application for registration of another trade mark in respect of manufactured tobacco products. This trade mark, if registered, is to be associated with trade mark no.988 of 1963. It is a composite mark consisting of the word "TEMPO" written in white lettering inside an oval which is coloured red and around which there is a thin gold border. Above the oval device there is a gold band above which is a crown device. Above that there appears a narrower gold band running across a small rectangle in the centre of the larger oblong rectangle which comprises the whole mark. The small rectangle is in a similar golden colour with narrow white stripes across it and in the centre a small oval in which the letters "R.J.R." appear. In accepting the mark for registration the Registrar disclaimed the right to the exclusive use of those three letters.

12. The appellants filed a notice of opposition to the registration of this mark. After hearing submissions, the Registrar dismissed the appellants' opposition; and this is an appeal from that decision.

13. Before the Registrar, the appellants' submission was that registration of the respondents' mark would amount to a breach of s.20 of the Trade Marks Ordinance Cap.43, which section reads:-

"................. no trade mark shall be registered in respect of any goods or description of goods that is identical with a trade mark belonging to a different proprietor and already on the register in respect of the same goods or description of goods, or that so nearly resembles such a trade mark as to be likely to deceive or cause confusion."

The gravamen of the appellants' objection was that, although the device of an oval is common in the tobacco trade throughout the world, Craven 'A' is the only brand of cigarettes marketed in cartons with a label of white lettering on a red oval device enclosed by a gold band; that the proposed trade mark "TEMPO" also consists of white lettering on a red oval device enclosed in a gold band in respect of goods which are identical to those covered by the appellants' trade marks no.653 of 1951 and no.1381 of 1962; and that therefore the respondents' trade mark so nearly resembles trade marks nos.653 of 1951 and 1381 of 1962 as to be likely to deceive purchasers into the belief that the respondents' goods bearing their mark are the goods of the appellants', thereby causing confusion.

14. There was evidence before the Registrar that the words "huk mou lui tsui cheung yin" (meaning "black cat filter long cigarettes") formed part of the appellants' advertisements of their Craven 'A' King Size cigarettes in various Chinese newspapers. The Registrar also had before him the answers given by a cigarette vendor to various questions in a questionnaire which he had received from the appellants' solicitors some time before the hearing. Apparently, this questionnaire had been sent to a number of cigarette vendors; but only one reply was received from a certain Mr. Wong King To. In it he stated that his customers were mainly Chinese office workers; that, for the most part, they spoke Cantonese; that about 90% of his customers indicated their choice of cigarette by the use of a colloquial name, and 10% by pointing to the packet they desired to purchase; that in the case of Craven 'A' King Size Filter Cigarettes, they used the colloquial names namely "tai mou wong" (meaning "big cat king") or "cheung huk mou" (meaning "long black cat"); but that about 10% of his Craven 'A' customers selected this brand by pointing to the packet.

15. The general rules followed by courts of law when deciding whether a mark is likely to deceive or cause confusion are well summarised in Kerly's Law of Trade Marks (9th Ed.) Cap.18 under the heading "Rules of Comparison". Relevant passages from that chapter are as follows:-

" The 'Idea of the Mark' is to be regarded. Two marks, when placed side by side, may exhibit many and varied differences, yet the main idea left on the mind by both may be the same. ....................... It would be too much to expect that persons dealing with trade-marked goods, and relying, as they frequently do, upon marks, should be able to remember the exact details of the marks upon the goods with which they are in the habit of dealing. Marks are remembered rather by general impressions or by some significant detail than by any photographic recollection of the whole. ....................... when the question arises whether a mark applied for bears such resemblance to another mark as to be likely to deceive, it should be determined by considering what is the leading characteristic of each. The one might contain many, even most, of the same elements as the other, and yet the leading, or it may be the only, impression left on the mind might be very different. On the other hand, a critical comparison of two marks might disclose numerous points of difference, and yet the idea which would remain with any person seeing them apart at different times might be the same .............. a mark is infringed if the essential features, or essential particulars of it, are taken. In cases of device marks, especially, it is helpful before comparing the marks to consider what are the essentials of the plaintiffs' device." (para.838).
" The trade mark is the whole thing-the whole picture on each has to be considered."(para.847).
" The question is not whether if a person is looking at two marks side by side there would be a possibility of confusion; the question is whether the person who sees the proposed trade mark in the absence of the other trade mark, and in view only of his general recollection of what the nature of the other trade mark was, would be liable to be deceived and to think that the trade mark before him is the same as the other, of which he has a general recollection."(para.853).

16. The submission of counsel for the appellants may be summarised thus:-

Craven 'A' cigarettes were originally sold in cartons bearing the black cat trade mark; but this feature has been slowly subordinated and supplanted to some extent by the white lettering in a red oval device which is surrounded by a gold band; what the respondents have done is to copy this oval device in the same colours; but the danger of confusion is enhanced by the fact that the respondents have placed a Crown on their mark above the oval device just as the appellants placed the cat's head above their oval device; the totality of the mark has to be considered; it is not permissible to look simply at the words "Tempo" and "Craven 'A'"; it is not permissible to select arbitrary features; the dominant idea conveyed by trade mark no.1381 of 1962 to someone unable to read English is the white lettering inside a red oval surrounded by a gold band; the court should not assume that the appellants' cigarettes will always be known to purchasers as "long black cat" or "big cat king"; registration of the respondents' mark should be refused; in the alternative, the Registrar should accept the respondents' mark for registration subject to the condition that the respondents should not use the mark in the following colour combination viz. the word "Tempo" in white lettering in a red oval bordered by a golden band, that is under s.11(2) of the Ordinance the Registrar should impose a negative colour condition.

The submission of counsel for the respondents may be summarised thus:-

The onus of showing that there is no reasonable probability of confusion rests upon the respondents; if the court is satisfied that there is no reasonable probability of confusion, the question of imposing a negative colour condition does not arise; if the court is of the opinion that there is less than a reasonable probability of confusion, the respondents' application for registration must be granted without conditions; a speculative possibility of confusion would not be sufficient to warrant the court refusing the respondents' application; there is no evidence to support the submission of counsel for the appellants that the black cat feature of the appellants' trade marks has been slowly subordinated and supplanted to some extent by the red oval device; on the contrary, Craven 'A' King Size Filter cigarettes are known to at least 90% of Chinese purchasers as "long black cat" or "big cat king"; there is no evidence that the appellants' cigarettes are known as "ovals" or "red ovals"; not only is the oval device common in the tobacco trade; a red oval device is common in that trade; and a colour combination of red white and gold in relation to that oval device is common; an oval device, or an oval device in any particular colour combination, would not be registrable per se; the Crown device on the respondents' mark is not placed immediately above the oval device as in the case of the cat's head; and in any event the Crown is gold whereas the cat's head has, over the years, been consistently black; not only are the sounds of the two words "Craven 'A'" and "Tempo" quite different, but they are visually different in that Craven 'A' contains more letters than Tempo, Craven 'A' is written on two lines and the letter 'A' in inverted commas is a distinctive feature; the distinctive features of the appellants' marks are the black cat's head and the words Craven 'A'; the distinctive features of the respondents' mark are the word Tempo and the Crown device; the oval device is simply decorative; the appellants are seeking a monopoly of what is mere decoration, not having established a reputation therefor.

17. I agree that there is nothing distinctive about the oval devices forming part of the marks in issue in this case. Oval devices, indeed red oval devices, are a very common feature of marks used in connection with the sale of manufactured tobacco products. There was affidavit evidence that a red oval device appears on the cartons in which Gold Flake cigarettes are sold. There is a similar device on the cartons in which "CUP" cigars are sold. Indeed, during the luncheon adjournment, counsel for the respondents said that he had purchased two cartons of other brands of cigarettes on each of which was white lettering in a red oval device which was surrounded by a gold band. Such devices are nothing more than decorative embellishments; and I venture to think that they could never, by any amount of user, become distinctive for the purposes of registration in class 34.

18. Of course, as I have said, the gravamen of the appellants' submission is that they are entitled to protection because of the colour limitation in the registration of trade mark no.1381 of 1962. In regard to that, the limitation as to colour was not imposed by the Registrar so as to create distinctiveness. It was part of the appellants' application for registration. Furthermore the oval device is only a part of trade mark no.1381; and the sequence of colours on the respondents' mark is different from the sequence of colours on the appellants' trade mark no.1381. There is no doubt that red is the predominating colour in the respondents' mark and white is the predominating colour in the respondents' Tempo mark. It is also true to say that red, white, and gold are very common colours on cigarette packets and labels. I am unable to accept that the colour limitation entered in respect of trade mark no.1381 entitles the appellants to claim distinctiveness in respect of white lettering in a red oval device surrounded by a gold band.

19. In this case, I have had the advantage of reading not only the Registrar's very carefully prepared grounds of decision. I also have before me a written decision(1) dated 20th March 1967 given by the Registrar of Trade Marks in Rhodesia in connection with a dispute between the parties to this appeal and involving the same trade marks. I agree generally with the views expressed in both these decisions. As the Rhodesian Registrar says (p.167):-

"It is a fact in this case that the competing marks each contain, in a prominent position and lettering, a distinctive and very different word, which do not look alike, they do not sound alike nor do they evoke the same mental picture ........... I think this must be the deciding factor. There is no doubt in my mind that the predominant feature of each mark is the word Craven 'A' and Tempo respectively.........."

And at p.168, the Rhodesian Registrar says:-

"I am mindful of the fact that, in this country, there is a large non-European community, many of them illiterate, and that it is important to bear in mind that greater significance is likely to be attached to a pictorial representation than to words or names. I think it is unlikely, however, that large sales of either Craven 'A' or Tempo cigarettes will be made to illiterate persons as they are the more sophisticated type of cigarette; but, if I am incorrect in this view. nevertheless such persons by reason of their illiteracy are usually careful and discriminating purchasers - see Lord Tomlin in United Kingdom Tobacco Co. Ltd. v. Malayan Tobacco Distributors Ltd. 51 R.P.C. 11 at 22 and Schreiner A.C.J. in Greenblatt v. Hirschson 1958 S.A.L.R. 371 at 376 - and, so far as they are concerned, the pictorial representations of the coronet and the cat's head are sufficiently different to enable them to draw a distinction between the respective marks."

20. I do not think that the proportion of "office workers" in Hong Kong who might be described as illiterate is large. But, in any event I entirely agree with the view that the purchase of cigarettes by a regular smoker is not a casual matter. Regular smokers are very discriminating. How often does one witness smokers refusing the offer of a cigarette simply because the brand offered is not the one which they are accustomed to?

21. In my view the Registrar came to the correct conclusion in this case. As Neville J. said in Thomas A. Smith Ltd.'s application(2):-

"Looking at the marks I do not think there is any possibility of anybody being deceived. That nobody will ever make a mistake is more than I am prepared to say, but, if there is a mistake, I think it will be made by some person so foolish or so unobservant, as in that respect to be without the pale of the protection of the law."

I see no reason to impose a negative colour condition under s.11(2).

22. For the above reasons, the appeal is dismissed with costs.

(W.A. Blair-Kerr)
Senior Puisne Judge

22nd December 1971.

Representation:

Litton, Q.C. & R. Tang (Johnson, Stokes & Master) for Appellant.

Mills-Owens (Deacons) for Respondent.

Mr. J.L.G. McLean for Registrar of Trade Marks.