Was there a failure to take into account relevant considerations?
28 Where an Act provides that an administrative decision-maker may take certain action if satisfied of the existence of particular specified matters, relief may be obtained if a person affected by the decision can show that the decision-maker failed to take into account a relevant consideration. But where the matter upon which the decision-maker is required to be satisfied is a matter of opinion it may be very difficult to show that the decision-maker has erred in this way: Buck v Bavone (1976) 135 CLR 110 at 118-9.
29 The applicant accepts that a failure to take into account a relevant consideration will only vitiate an administrative decision if the consideration is one the decision-maker was bound to take into account: Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24 ("Peko-Wallsend") at 39. The applicant's argument rested on the expression "taking account of all the circumstances" that appears in both paragraphs of s 38(1), although the argument was focussed on the use of the expression in paragraph (a). The applicant argued that the Registrar was required to take account of all the circumstances existing at the time the Trade Mark applications were accepted (emphasising the adjective "all") but did not do so. Specifically, the applicant submitted that in setting out his reasons for finding that the applications should not have been accepted (at [13]-[22]) the delegate did not mention three relevant matters:
the applicant's first trade mark (the daisy mark) and its earlier priority date,
the applicant's prior tulip mark and its earlier priority date, and
the fact that the Trade Marks were substantially identical or similar to the applicant's prior tulip mark, and cover the same, similar or closely related goods or services
30 As he did not mention these matters in those paragraphs - so the argument ran - the delegate did not take into account all the circumstances existing at the time the applications were accepted and the decision was an improper exercise of the power conferred by the Act because of a failure to take into account a relevant consideration. I accept that the matters to which the applicant referred are apparently relevant. But I reject the argument.
31 The mere fact that the three matters were not mentioned in the particular paragraphs does not mean they were not taken into account: Reece v Webber (2011) 192 FCR 254 at [65]. There is a difference between failing to consider something and failing to mention it. There is no principle of law that requires an administrative decision-maker to advert to every piece of relevant evidence. Cf. Applicant WAEE v Minister for Immigration and Multicultural Affairs (2003) 75 ALD 630 at [46]. In any case, at [19] the delegate referred to the applicant's first trade mark, albeit in the context of a discussion of an earlier decision concerning that mark. At four places in his decision ([4], [10], [23] and [26]) he also referred to the applicant's prior tulip mark. He did so in the context of addressing the applicant's argument that the examiner's decision to accept the Trade Marks was consistent with the acceptance of the earlier ones.
32 For these reasons I am unable to conclude that the delegate did not take the three matters into account.
33 As the applicant's argument developed, however, it took a different twist. This part of the argument rested on the terms of s 44, which provides (omitting the notes):
(1) Subject to subsections (3) and (4), an application for the registration of a trade mark (applicant's trade mark) in respect of goods (applicant's goods) must be rejected if:
(a) the applicant's trade mark is substantially identical with, or deceptively similar to:
(i) a trade mark registered by another person in respect of similar goods or closely related services; or
(ii) a trade mark whose registration in respect of similar goods or closely related services is being sought by another person; and
(b) the priority date for the registration of the applicant's trade mark in respect of the applicant's goods is not earlier than the priority date for the registration of the other trade mark in respect of the similar goods or closely related services.
(2) Subject to subsections (3) and (4), an application for the registration of a trade mark (applicant's trade mark) in respect of services (applicant's services) must be rejected if:
(a) it is substantially identical with, or deceptively similar to:
(i) a trade mark registered by another person in respect of similar services or closely related goods; or
(ii) a trade mark whose registration in respect of similar services or closely related goods is being sought by another person; and
(b) the priority date for the registration of the applicant's trade mark in respect of the applicant's services is not earlier than the priority date for the registration of the other trade mark in respect of the similar services or closely related goods.
(3) If the Registrar in either case is satisfied:
(a) that there has been honest concurrent use of the 2 trade marks; or
(b) that, because of other circumstances, it is proper to do so;
the Registrar may accept the application for the registration of the applicant's trade mark subject to any conditions or limitations that the Registrar thinks fit to impose. If the applicant's trade mark has been used only in a particular area, the limitations may include that the use of the trade mark is to be restricted to that particular area.
(4) If the Registrar in either case is satisfied that the applicant, or the applicant and the predecessor in title of the applicant, have continuously used the applicant's trade mark for a period:
(a) beginning before the priority date for the registration of the other trade mark in respect of:
(i) the similar goods or closely related services; or
(ii) the similar services or closely related goods; and
(b) ending on the priority date for the registration of the applicant's trade mark;
the Registrar may not reject the application because of the existence of the other trade mark.
34 The applicant submitted that the delegate fell into error because, once he formed the view that the marks were deceptively similar, he should have notified the applicant and asked for evidence or submissions going to the issues under subss 44(3) and (4). The applicant submitted that that was consistent with the requirements of procedural fairness. It argued that the failure to consider those subsections means that the delegate could not have formed the requisite degree of satisfaction under s 38 because the matters raised by those subsections formed part of the circumstances existing when the application was accepted. I interpolate that, although the applicant was given an opportunity to amend its application to plead a denial of procedural fairness, it elected not to do so.
35 The applicant complained that the delegate noted the substance of subss (1) and (2) of s 44 but did not apply his mind to subss (3) and (4), which qualify the operation of the earlier two subsections. (Section 44 has been described as an "interlocking series of subsections": McCormick & Co Inc v McCormick (2000) 51 IPR 102 at [93]). In particular, the applicant submitted that the delegate did not consider whether the applicant's trade marks had been used for the period referred to in subsection (4). Yet - so the applicant argued - continuous use during the statutory period gives rise to an obligation not to reject the application for registration.
36 It is common ground that the delegate did not consider the terms of subsections (3) or (4). There are some difficulties, however, with the applicant's argument.
37 In the first place, the delegate was not considering whether or not the applications for registration should be rejected but where there was error in accepting them. The delegate's focus was with error in the examination process. The effect of the delegate's decision is to require the examiner to reconsider whether the Trade Mark applications should be accepted. At that point the matters raised in s 44 will come into play. The parties agreed that the examiner would not be bound by the delegate's finding of deceptive similarity. The fact of the matter, as subs 38(2) states, is that once the acceptance is revoked, the application is taken to have never been accepted and the process begins anew.
38 Secondly, before the hearing, in the letter sent on behalf of the Registrar dated 28 March 2011, the applicant's attention was expressly drawn to s 44 of the Act. At the hearing, the applicant's representative, Mr McInnes, an experienced trade mark attorney, made a forensic choice not to address the delegate on the question of these issues. The delegate referred to this at [12] of his reasons:
Mr McInnes cautioned against revoking acceptance on the basis of a simple difference of opinion between examiners, implying that this was the case here. After being given the opportunity to do so, Mr McInnes declined to address the issue of deceptive similarity between the trade marks in any detail. He believed it would compromise his client's position should the matter progress to an opposition under section 52 of the Act. However, in order to decide whether it is reasonable to revoke acceptance I find that I must assess the proposed grounds for rejection.
39 Except for the note of caution to which the delegate referred, I was informed by counsel for the applicant that Mr McInnes did not address the issue of deceptive similarity between the trade marks at all. Had he taken up the opportunity afforded him to do so, no doubt he would have drawn the Registrar's attention to the matters raised by subsections (3) and (4) of s 44.
40 In any event, the question of whether this ground of review can be made out depends on whether the delegate was obliged to take all these matters into account. Where the relevant factors are not expressly stated, what an administrative decision-maker is bound to take into account depends on what is implied by the subject-matter, scope and purpose of the statute: Peko-Wallsend at 39-40. In this case I do not think that an implication can be gleaned from the subject-matter, scope and purpose of the Act that the delegate was bound to take into account the matters upon which the applicant relied. Plainly, the matters set out in s 44 must be taken into account in the exercise of the power under s 33 to accept or reject the application, but that is not the power the delegate was exercising in this case.
41 In the case of the three matters relating to the registration of the applicant's earlier marks, I note what Jacob J said in British Sugar plc v James Robertson & Sons Ltd [1996] RPC 281 ("British Sugar") at 305:
It has long been held under the old Act that comparison with other marks on the register is in principle irrelevant when considering a particular mark tendered for registration, see eg Re "Madame" Trade Mark [1966] RPC 541 and the same must be true under the 1994 Act. I disregard the state of the register evidence.
42 Wilcox J cited this passage with approval in Ocean Spray at [35].
43 Section 38 was amended by the Intellectual Property Laws Amendment Act 2006 (Cth) ("the 2006 Amendment Act"). Before the 2006 Amendment Act commenced on 27 March 2007, the Registrar's power was limited. In the absence of special circumstances, the Registrar could only revoke acceptance of an application if he or she was satisfied that the application was accepted because of an error or omission in the course of examination. In the absence of any express reference, however, I would not conclude that the Parliament intended by the amendment to require a comparison with earlier registered marks. Nothing in the Explanatory Memorandum on the Bill or the Minister's Second Reading Speech would suggest so.
44 That brings me to what I see as the fourth problem with the applicant's argument. It involves, in my view, an approach to the interpretation of s 38 that does not appear to promote the purpose of the section.
45 The purpose of the amendment, according to the Explanatory Memorandum, was to expand the Registrar's power to revoke acceptance, not to constrain it.
[14] Subsection 38(1) of the Trade Marks Act as presently enacted allows the Registrar to revoke the acceptance of a trade mark application in certain circumstances. These circumstances relate to whether the application for registration of the trade mark was accepted because of an error or omission in the course of examination, or to 'special circumstances' of the case. This provision has been interpreted in a narrower manner than was originally intended, so that certain classes of errors or omissions, and certain types of special circumstances, have been held not to fall within the operation of the provision. One of the aims of the provision is to put beyond doubt that the Registrar may take account of all circumstances when deciding whether to revoke the acceptance of a trade mark, and not just a limited sub-class of circumstances.
[15] Paragraph 38(1)(a) clarifies that the Registrar is able to take account of any circumstance that existed which should have prevented acceptance. It is not necessary that the Registrar knew or was in a position to know of the existence of the circumstances at the time the application was accepted for this paragraph to apply. This may include an error of judgement or omission on the part of the examiner, or information about the trade mark that was not available to the Registrar at the time of examination, for example:
• the examiner may have overlooked or discounted information that would lead, if properly considered, to the examiner rejecting the application; or
• an international application for a conflicting mark having an earlier priority date had not yet been filed in Australia.
The Registrar is not limited in what he or she may consider.
46 I accept, of course, that the task of the Court is to give effect to the objective intention of the Parliament not the subjective intention of the Minister (Harrison v Melhem (2008) 72 NSWLR 380 ("Harrison") at [16] per Spigelman CJ, that is, the intention as it is expressed in the legislation (Harrison at [160] per Mason P)). The section does not explicitly confer a discretion on the Registrar to have regard to all the circumstances. On the other hand, neither does it state that the Registrar must take into account all the circumstances. In my view, the Parliament did not intend to require the Registrar to take into account the three matters the applicant relies upon or the matters referred to in subss 44(3) and (4). I note that the authors of Butterworths Annotated Trade Marks Act 1995 (LexisNexis Butterworths, 2010) state that, as the expression "taking account of all the circumstances" also appears in s 84A(1) (which deals with revocation of registration) where some of the circumstances to be taken into account are specified, it is likely that the same circumstances would be relevant to a decision under s 38. That may be so as a matter of commonsense. But that does not mean that the Registrar is bound to take those circumstances into account in considering whether to revoke acceptance of an application for registration under s 38. It could not be said, for example, (and it was not argued) that the delegate erred in this case because he did not consider any relevant obligation of Australia under an international agreement, although that is a circumstance to be taken into account under s 84A. Section 84A was also inserted into the Act by the 2006 Amendment Act. Had Parliament intended to require the Registrar to take into account the matters set out in s 44(3) and (4) when deciding whether to revoke acceptance of an application, it could easily have said so. It seems that Parliament's intention in not specifying any circumstances in s 38 was not to require the Registrar, in exercising his or her power under that section, to take into account any particular circumstances.
47 I am reinforced in this view by a consideration of the effect of the Registrar's decision, which is to trigger a whole new examination where all relevant circumstances can be considered.
48 For all these reasons I do not think that the delegate was bound to consider the various matters raised by the applicant. I would therefore reject the first ground of review.