Decision

Centric Brands Holding LLC v. Stikeman Elliott LLP, 2025 FCA 161

Justice Mactavish; Justice Stratas; Justice Locke - 2025-09-10

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Centric appeals a decision 2024 FC 204 that dismissed its appeal of a decision of the TMOB 2022 TMOB 168. ... For the reasons that follow, I would allow Centric’s appeal ... and set aside the expungement of the Mark’s registration. ... The Federal Court concluded that the relevant period to be considered with regard to the Notice would not begin with Centric’s acquisition of the Mark and would instead include the time during which the previous owner of the Mark had title. The Federal Court considered Centric’s evidence concerning non-use by the previous owner but found that it did not amount to special circumstances as contemplated in subsection 45(3) of the Act. ... In my view, there is nothing in the text, the context or the purpose of section 45 that excludes the possibility that a recent arms’ length acquisition of a trademark may constitute special circumstances such that the acquirer could be relieved of the obligation to provide evidence of use, or justify a period of non-use, prior to the acquisition. ... For these reasons, it is my view that the Federal Court erred in law in refusing to apply the New Owner Jurisprudence on the basis that the acquisition of the Mark had not yet closed at the time of issuance of the Notice. Therefore, the Federal Court’s Decision should be set aside. ... Accordingly, Centric was not in as good a position as the previous owner to explain non-use of the Mark during the period prior to the signing of the Agreement. This is good justification to apply the New Owner Jurisprudence in this case and assess special circumstances from the date of signing the Agreement. ... In this case, I am convinced that the recent acquisition of the Mark, together with the short time until the end of the relevant period, constitute special circumstances excusing the absence of use.

Decision relates to:

 

Canadian Intellectual Property