[2026] FCA 383
General information, not legal advice.
Federal Court of Australia
2026-04-08
Downes J
Original judgment source is linked above.
Anchorage Capital Partners Pty Ltd v ACPA Pty Ltd (2018) 259 FCR 514; [2018] FCAFC 6
Anchorage Capital Partners Pty Ltd v ACPA Pty Ltd (No 3) (2015) 116 IPR 159; [2015] FCA 1436
Austin, Nichols & Co Inc v Lodestar Anstalt (2012) 202 FCR 490; [2012] FCAFC 8
Crazy Ron's Communications Pty Ltd v Mobileworld Communications Pty Ltd (2004) 61 IPR 212; [2004] FCAFC 196
Dunlop Aircraft Tyres Ltd v Goodyear Tire & Rubber Co (2018) 262 FCR 76; [2018] FCA 1014
Health World Ltd v Shin-Sun Australia Pty Ltd (2010) 240 CLR 590; [2010] HCA 13
Killer Queen LLC v Taylor (2024) 306 FCR 199; [2024] FCAFC 149
Maughan Thiem Auto Sales Pty Ltd v Cooper (2013) 216 FCR 197; [2013] FCAFC 145
Optical 88 Ltd v Optical 88 Pty Ltd (No 2) (2010) 89 IPR 457; [2010] FCA 1380
PB Foods v Malanda Dairyfoods Ltd (1999) 47 IPR 47; [1999] FCA 1602
PDP Capital Pty Ltd v Grasshopper Ventures Pty Ltd (2021) 285 FCR 598; [2021] FCAFC 128
Pham Global Pty Ltd v Insight Clinical Imaging Pty Ltd (2017) 251 FCR 379; [2017] FCAFC 83
Self Care IP Holdings Pty Ltd v Allergan Australia Pty Ltd (2023) 277 CLR 186; [2023] HCA 8
(a) the respondent was not the owner of Australian trade mark number 1172976 (within the meaning of section 58 of the Trade Marks Act 1995 (Cth)) as at the priority date of that trade mark;
(b) Australian trade mark number 1172976 is and has at all material times been invalid.
(a) the expiry of 14 days from the date of these orders; or
(b) if an application for special leave to appeal is filed within 14 days from the date of these orders, the final determination of that application if special leave not be granted or, if special leave be granted, the subsequent final determination of any appeal.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
(1) declared that, by using the words "BLACK STAR PASTRY" in relation to the supply of coffee beverages, café services, and coffee (other than coffee beans and ground coffee the respondent supplied in packages on which the words "ST. ALi" in their entirety were visible) BSP "infringed Australian Registered Trade Mark No 112976 [sic], being a trade mark of which the applicant is the registered owner";
(2) declared that, by using the words "BLACK STAR PASTRY" in relation to the supply of coffee (other than coffee beans and ground coffee the respondent supplied in packages on which the words "ST. ALi" in their entirety were visible) BSP "has infringed the applicant's Australian Registered Trade Mark No 128833 [sic], being a trade mark of which the applicant is the registered owner".
The respondent be permanently restrained, whether by itself, its directors, officers, employees, servants, agents or otherwise, from using as a trade mark, without the licence or authority of the applicant, Australian trade mark nos. 112976 (976 mark) [sic] and 128833 (833 mark) [sic] or any sign that is substantially identical with, or deceptively similar to, either or both of the 976 and 833 marks, in relation to the goods in respect of which those marks are registered, and in particular from using, without the licence or authority of the applicant, the words "BLACK STAR PASTRY" as a trade mark in relation to the supply of coffee beverages, café services, and coffee (including specialty coffee retailing services).
(Emphasis in original.)
(1) Mr Richards applied for registration of the Blackstar 976 trade mark in his sole name;
(2) at the date of application, Mr Richards was not the sole owner of the Blackstar 976 trade mark. Rather, he was an owner of that mark with his wife, Ms Andrews;
(3) Mr Richards and Ms Andrews jointly authored the Blackstar 976 trade mark;
(4) Mr Richards and Ms Andrews intended to use, and did use, the Blackstar 976 trade mark together in the Blackstar business: J [2];
(5) Ms Andrews was not named as an applicant.
... Relevant to BSP's cross-claim [for cancellation pursuant to s 88] is s 58, which provides that the "registration of the trade mark may be opposed on the ground that the applicant is not the owner of the trade mark".
Although s 58 provides as a ground for opposing an application for the registration of a trade mark that the applicant is not the owner of the trade mark, the TM Act does not require that a person who applies for the registration of demonstrate that he or she is the owner of the trade mark. Paragraph (a) of s 27(1) of the TM Act only requires that the person who applies for the registration of a trade claim that he or she is the owner of the trade mark. Further, although s 28 of the TM Act concerns applications for the registration of a trade mark in which two or more people have an interest, that section does not require that persons who hold such interest together apply for the registration of the trade mark. That is apparent from the text of s 28, which provides that such persons may together apply for its registration under s 27(1) of the TM Act (emphasis added):
If the relations between 2 or more persons interested in a trade mark are such that none of them is entitled to use the trade mark except:
(a) on behalf of all of them; or
(b) in relation to goods and/or services with which all of them are connected in the course of trade;
the persons may together apply for its registration under subsection 27(1).
There is another observation that may be made: s 28 of the TM Act does not capture all the circumstances in which two or more persons may have an interest in a trade mark. It is conceivable that one of two or more persons who hold an interest in the trade mark may be entitled to use the trade mark without having to do so on behalf of all of the other persons. That entitlement may arise from an express agreement; or it may arise from some other way, for example, the applicant's holding his or her interest in the trade mark on trust for one or more other persons which authorise the trustee to use the trade mark as the trustee sees fit, subject to the terms of the trust to which the trade mark is subject. It is also conceivable that one of two or more persons interested in the trade mark may be entitled to use the trade mark in relation to goods or services with which all of the persons with an interest in the trade mark them are not concerned. Thus, two or more persons who have an interest in a trade mark who do not fall within the circumstances specified by s 28 of the TM Act would not be permitted by that section to apply together for the registration of the trade mark.
The scheme of the TM Act, therefore, is only to require a person who applies for the registration of a trade mark to claim that he or she is the owner of the trade mark, but to leave it up to a person who disputes the claim to initiate the dispute, either by invoking the administrative mechanism provided for by s 58 of the TM Act before the trade mark is registered, or by invoking the jurisdiction of a prescribed court pursuant to s 88(1) of the TM Act, after the trade mark has been registered. That suggests, and in any event it has been held, that the onus lies on the person who disputes an applicant's claim that he or she is the owner of the trade mark that the applicant was not the owner of the trade mark the time he or she applied for its registration.
Next, it is necessary to consider the meaning of the expression "the owner of a trade mark". The meaning of that expression is based on the meaning judges have given to the expression "the proprietor of a trade mark" that was used in earlier trade mark legislation, beginning with the Trade Mark Registration Acts 1875-1877 (UK). Initially there was doubt about whether those Acts "did no more than provide for the registration of marks already distinctive by reason of use and, as such, protected at common law, or whether it enabled a person who had coined a trade mark to obtain registration and treat the registration as equivalent to prior use". That doubt was resolved in In re Hudgson's Trade-Marks, where Cotton LJ said:
The difficulty is this: Is a [person] to be considered as entitled to the use of any trade-mark when he [or she] has never used it at all? That is a difficulty, but I think the meaning is this. If a [person] has designed and first printed or formed any of those particular and distinctive devices which are referred to in the first part of sect. 10 [being equivalent to s 17 of the TM Act], he [or she] is then looked upon as the proprietor of that which is under that Act a trade-mark, which will give him [or her] the right so soon as he registers it. How can it be said he is entitled to the exclusive use of it? He never has used it; but in my opinion the language, though not appropriate, means this, that a [person] who designs one of those special things pointed out in sect. 10, is, as designer, to be considered as the proprietor of it, and if there is no one else who has used it, or who can be interfered with by the registration and subsequent assertion of title to the mark, then he [or she] is to be considered as entitled within the meaning of the Act to the exclusive use of that which in fact has never been in any way used, but which has only been designed by him [or her], and which he [or she] can be treated as the person entitled to register, if no one else had so used it as that his user would be interfered with by the registration.
In Shell Company of Australia Ltd v Rohm and Haas Company, Dixon J reviewed the course of legislation and decisions in relation to the use and meaning of the expression "proprietor of a trade mark", and provided the following influential statement of what that expression means:
[I]t is clear enough from the course of legislation and of decision that an application to register a trade mark so far unused must, equally with a trade mark the title to which depends on prior user, be founded on proprietorship. The basis of a claim to proprietorship in a trade mark so far unused has been found in the combined effect of authorship of the mark, the intention to use it upon or in connection with the goods and the applying for registration. For a time the provision that application was equivalent to prior user necessarily embodied in statutory form the conclusion that the applying for registration completed title to the unused mark, where the other elements existed. But the principle had been already adopted by Cotton L.J. in In re Hudson's Trade Mark . . . .
Dixon J went on to explain the notion of "authorship" as follows:
Authorship of course includes claim through or under the author. But it involves the origination or first adoption of the word or design as and for a trade mark.
A person cannot be properly registered unless he is the proprietor. Proprietor is the person who at the moment he makes application to be registered is entitled to the exclusive use of the name, whether he then or before publicly adopted it. A man cannot be said to have adopted a name if someone else has done so before him. Section 19 merely says that the act of applying is to be deemed equivalent to public user. No one could otherwise be entitled to registration as proprietor unless he had publicly used the trade name before. The section does not affect the fact that another person used the name first. The difficulty here is that although Hicks may have by virtue of his application publicly used the name, someone else publicly used it before him.
Dixon J also reproduced the following passage from the judgment of Holroyd J:
For the reasons given by us in the course of the argument, we think this application to expunge Hicks's name from the register of trade marks as the proprietor of the word 'Empress' as a trade mark applied to stoves ought to be granted. In order to substantiate his application to be placed on the register for this word he must have claimed to be the proprietor, and the word 'proprietor' must be taken to mean the person entitled to the exclusive use of that name. If there is anyone else who would be interfered with by the registration of the word 'Empress' in the exercise of a right which such person has already acquired to use the same word in application to the same kind of thing, then Hicks ought not to have been put on the register for that trade mark, and his name will be properly removed on the application of the person whose right of user was thereby disturbed.
The judgment of Dixon J in Shell, and his Honour's reference to Hicks, suggests that the notion of "proprietor" of a trade mark and, therefore, "owner" of a trade mark for the purposes of s 58 of the TM Act, is directed to whether some person other than the person claiming to be the owner of the trade mark used the trade mark before the person claiming to be the owner of the trade mark applied for its registration. That is the notion to which "the owner" in s 58 of the TM Act is directed is supported by the following passage from the judgment of the Full Federal Court [in] Food Channel Network Pty Ltd v Television Food Network GP:
Section 58 of the Act provides that registration of a trademark may be opposed on the ground that the applicant is not the owner of the mark. In this context, the term "owner" derives meaning from its common law origins relating to prior use. As explained in Shanahan's Australian Law of Trade Marks and Passing Off (4th ed, Lawbook Co., 2008) (p 380):
The first user is the person entitled to claim to be the owner and if the applicant is shown not to be the first user, the ground of opposition will be established.
The question, therefore, that arises on an application under s 88(1) of the TM Act for the cancellation of the registration of a trade mark on the ground that the applicant for the registration of the trade mark is not its owner is whether some person other than the applicant had used or intended to use the trade mark before the applicant applied for its registration.
Determination
BSP claims that being one of two joint owners, Mr Richards was not entitled to apply for the registration of the Blackstar 976 trade mark in his name alone, but was only entitled to apply for the registration of that trade mark together with Ms Andrews. That, however, does not address the question that arises on an application to cancel the registration of a trade mark on the ground specified in s 58 of the TM Act; the question is whether the person who applied for the registration of a trade mark, in this case, Mr Richards, was not the owner of the trade mark at the time the person applied for its registration.
That being the question, and given the matters it alleges in its cross-claim and in its written submissions, BSP's case is that Mr Richards was not the owner of the Blackstar 976 trade mark at the time he applied for its registration because he was a joint owner of the Blackstar 976 trade mark, but only he, not Mr Richards and Ms Andrews, applied for its registration. BSP does not, however, explain how that translates into Mr Richards being an "applicant who is not the owner of the [976] trade mark" within the meaning of s 58 of the TM Act. Perhaps one way is to read "applicant" in s 58 to mean "applicants", so that s 58 will be made out if the applicants are not both the owners of the trade mark they have applied to be registered. Even if s 58 is so read, it could not be applied to the circumstances of Mr Richards's application for the registration of the Blackstar 976 trade mark, because only Mr Richards applied for its registration. Thus there were not two applicants of whom it could be said they both were not the owners of the Blackstar 976 trade mark at the time Mr Richards applied to have it registered.
Perhaps BSP implicitly submits that s 58 of the TM Act is to be construed to mean "the applicant is not the owner of the trade mark or, where there is more than one owner, the applicant is not the only owner of the trade mark". Apart from the general impermissibility of adding text to construe statutory provisions, such a construction of s 58 would be inconsistent with s 28 of the TM Act in two ways. As I have already noted, s 28 does not require that two or more persons interested in a trade mark in the circumstances stated in that section must together apply for the registration of the trade mark; it provides that such two or more persons may together apply for the registration of the trade mark. Second, and as I have also noted, s 28 of the TM Act does not capture all the circumstances in which two or more persons may have an interest in a trade mark. If s 58 is construed to mean "the applicant is not the owner of the trade mark or, where there is more than one owner, the applicant is not the only owner of the trade mark", it would effectively prevent two or more persons who have an interest in a trade mark, but who do not fall within the circumstances provided in s 28, from being able to register the trade mark.
How, then, should the expression "the owner of the trade mark" in s 58 of the TM Act be construed where two or more persons have some interest in the trade mark? The simplest and most appealing construction is that "the owner of the trade mark" means a person who has used or has the ability to use the trade mark, with or without the authority of any other person who has an interest in the trade mark. This construction would leave open for inquiry, if another person so alleges, whether a person who is not the applicant for the registration of the trade mark has used the trade mark and, if so, whether that person was entitled to do so without the authority of, and otherwise without acting in concert with, the applicant. If the second question is answered in the affirmative, the applicant for the trade mark will not be the owner of it for the purposes of s 58 of the TM Act. It would also leave open for enquiry, if another party so alleges, whether there is another person who has an interest in the trade mark and, if so, whether that other person did not intend to use the trade mark with the applicant for registration. Again, if the second question is answered in the affirmative, the applicant for registration would not be the owner of the trade mark for the purposes of s 58 of the TM Act.
BSP's cross-claim appears to be premised on another assumption, namely, that two or more joint owners of a trade mark cannot each be "the owner of the trade mark". That assumption may overlook the nature of the interest joint tenants hold in the property of which they are joint tenants. The interest of joint tenants of property has been summarised as follows:
Concurrent ownership can take one of two forms: the 'joint tenancy' or the 'tenancy in common'. The term 'tenancy' in fact adds nothing: the word 'ownership' would provide greater clarity, but the use of the word 'tenancy' is entrenched. The essence of joint tenancy is that each joint tenant is entitled to the whole of the interest which is the subject of co-ownership. In other words, no joint tenant holds any specific or distinct share in the property; rather, each joint tenant (together with the other joint tenant or tenants) is invested with the totality of the co-owned interest. The distinguishing feature of joint ownership is survivorship (ius accrescendi): when one joint owner dies, the property is owned by the surviving joint owners, and the estate of the deceased joint owner gets nothing. By contrast, a tenancy in common is a form of co-ownership in which the co-owners hold distinct shares. . . . The sharing of a single thing in defined proportions is the essence of a tenancy in common - and gives rise to the phrase that tenants in common hold a thing in 'undivided shares'.
Thus, if Mr Richards was the joint owner of the Blackstar 976 trade mark with Ms Andrews, each of Mr Richards and Ms Andrews was the owner of it. It is, of course, the case that a joint owner's interest as the owner of the trade mark could be severed if the joint owner purported to deal with the trade mark without the consent of the other joint owner. BSP does not allege, however, that Mr Richards applied for the registration of the Blackstar trade mark without the consent of Ms Andrews. If it were necessary to make any such finding, the evidence would not support such finding; on the contrary it would support a finding that Mr Richards applied for the registration of the Blackstar 976 trade mark with the consent of Ms Andrews.
Another incident of joint ownership of personal property, at least where the personal property is a chose in possession, is that the joint owners may agree that one of them would have possession of the property, with the consequence that the joint owner in possession could, in his or her own name, maintain an action in detinue. That is a basis for concluding that the joint owners or any personal property, tangible or intangible, could agree that one of them could deal with the property solely in his or her own name. If that principle is correct, the onus would be on BSP to show that Mr Richards registered the Blackstar 976 trade mark in his own name without the agreement of Ms Andrews. BSP has not alleged or sought to prove any such thing. In any event, as I have already noted, the evidence would support a finding that Mr Richards applied for the registration of the Blackstar 976 trade mark with the authority of Ms Andrews.
I am not satisfied that Mr Richards was not the owner of the Blackstar 976 trade mark within the meaning of s 58 of the TM Act. BSP's cross-claim, therefore, fails. On the contrary I am satisfied that Mr Richards was entitled to apply for the registration of the Blackstar 976 trade mark in his own name; and he was so because he was the joint owner of the Blackstar 976 trade mark, and Ms Andrews consented to his applying for the registration of the Blackstar 976 trade mark in his own name.
(Emphasis original; footnotes omitted.)
The registration of a trade mark may be opposed on the ground that the applicant is not the owner of the trade mark.
...Parliament can be taken to have intended the Register to speak for itself. In most cases people who peruse an extract from the Register should be able to understand what it says without being obliged to make inquiries about the business history or previous conduct of the registered owner of the mark.
(Citations omitted.)
See also Self Care at [39]-[40]; Health World Ltd v Shin-Sun Australia Pty Ltd (2010) 240 CLR 590; [2010] HCA 13 (French CJ, Gummow, Heydon and Bell JJ) at [22]; Austin, Nichols & Co Inc v Lodestar Anstalt (2012) 202 FCR 490; [2012] FCAFC 8 (Jacobson, Yates and Katzmann JJ) at [38].
Subject to subsection (2) and section 89, a prescribed court may, on the application of an aggrieved person or the Registrar, order that the Register be rectified by:
(a) cancelling the registration of a trade mark; or
(b) removing or amending an entry wrongly made or remaining on the Register; or
(c) entering any condition or limitation affecting the registration of a trade mark that ought to be entered.
(1) the BSP business opened its first store for trading in about late October 2008: J [35];
(2) the BSP business sold a wide variety of baked goods, including bread, croissants, pastries, cakes, quiches, pies and sandwiches. The BSP business also sold coffee: J [36];
(3) Mr Thé used coffee beans supplied by a business known as "The Little Marionette"; and the BSP business sold all types of espresso-based coffees using The Little Marionette coffee beans, as well as other beverages. While the BSP business had, at one time, stamped coffee cups and paper bags with the Black Star Pastry logo (as noted at J [37]-[38]), counsel for Mr Richards confirmed that it was not part of his client's case that BSP had used its trade marks on coffee cups;
(4) in July 2018, JKLP BSP Pty Ltd (JKLP) purchased the majority of the shares that Mr Thé held in BSP. At that time, BSP was conducting four stores in Sydney. After JKLP acquired ownership of BSP, BSP opened further stores, including in Melbourne and China: J [61]-[63].
(1) BSP has sold coffee in its stores using beans supplied by other companies. When JKLP acquired the business, and until around 2019, BSP sold coffee using coffee beans supplied by The Little Marionette. In November 2021, in its St Kilda store, BSP started to use coffee beans supplied by ST. Ali, and since June 2021, BSP sells coffee from all of its stores using beans supplied by ST. ALi: J [104];
(2) BSP does not sell "Black Star Pastry" branded coffee products: J [108(a)].
The evidence, and in particular the photographs Mr Richards took of the BSP stores, reveals that which BSP admits in its defence: BSP sells a number of classes of goods, and provides a number of services in connection with the sale of those goods at its stores. BSP sells cakes and pastries; it sells coffee beverages and other beverages; it sells coffee in packages, some of which bear the name "ST. ALi", and some of which are covered by packaging that includes either the word "Stardust" with the Star boy logo, or the word "Milkyway" with the hedgehog logo; BSP provides the service of making coffee (and other) beverages on order for immediate consumption; and it provides space and facilities at and by which customers may sit down, have served to them, and consume coffee (and other) beverages, and products they have purchased from in or around the same space.
There are greater differences between the Blackstar 833 trade mark and the BSP trade marks than between the Blackstar 976 trade mark and the BSP trade marks; and that is because the Blackstar 833 trade mark is a logo comprised of both the word "Blackstar" and a figure in the shape of star. Nonetheless, I find that the word "Blackstar" dominates the Blackstar 833 trade mark, as it dominates each of the BSP trade marks. Given that finding, the reasons for which I have found the BSP trade marks are deceptively similar to the Blackstar 976 trade mark apply to the Blackstar 833 trade marks, which means I find that the BSP trade marks are deceptively similar to the Blackstar 833 trade mark.
There is a very strong resemblance between the BSP012 trade mark and the New BSP Logo, on the one hand, and the Blackstar 976 trade mark, on the other; and that resemblance lies in all marks containing two differently composed names, but both of which contain two syllables which, when uttered, convey the same sound, namely, "Blackstar" and "Black Star". It is the case, as BSP submits, that "Black Star Pastry" has the additional word "pastry"; but "pastry" is liable to register a significantly lesser impression on the reader than the words "Black Star" when read with "Black Star". "Black Star" is not a descriptive term and for that reason is more liable to attract attention and be remembered than "pastry", which is a descriptive term.
The resemblance between the Blackstar 976 trade mark and the BSP202 and BSP011 trade marks is not as strong as the resemblance between the Blackstar 976 trade mark, the BSP012 trade mark and New BSP Logo; and that is because each of the BSP202 and BSP011 trade marks contains features additional to the words "Black Star Pastry". The words are written in fancier letters than the letters that comprise the New BSP Logo; the three words are written in the order of top to bottom, rather than left to right; and the letters are contained in a box with a grey background. Notwithstanding these additional features, however, the words "Black Star" predominate, both visually (the letters in which the words are written appear to be larger than the letters with which the word "pastry" is written), and aurally.
BSP submits that "pastry" conveys the idea of pastries or baked goods, noting that it "is unlikely that consumers with an imperfect recollection would disregard or forget the presence of these words". This submission appears to confuse which of the trade marks are required to be compared on the basis of a buyer's memory. The relevant trade mark that is to be compared on the basis of the buyer's memory is the registered trade mark that is alleged to have been infringed, in this case, the Blackstar 976 trade mark; and, moreover, whether a buyer would be deceived or confused must be determined by comparing the buyer's memory of the Blackstar 976 trade mark with the BSP trade marks as the BSP trade marks are in fact used in connection with coffee beverages, and coffee, being among the goods in respect to which the Blackstar 976 trade mark is registered. The relevant question is: would a person who buys a coffee beverage or coffee in relation to which any of the BSP trade marks have been used as a trade mark entertain a reasonable doubt as to whether the coffee beverages and coffee "come from the same source" as the coffee beverages in relation to which the Blackstar 976 trade mark has been used as a trade mark? Given the strong resemblance I have found exists between the Blackstar 976 trade mark and the BSP trade marks, that question is to be answered in the affirmative.
I am satisfied there is a real, tangible danger that, due to the resemblance between the Blackstar 976 trade mark, on the one hand, and each of the BSP trade marks, on the other, a notional buyer of a coffee beverage or coffee in relation to which the BSP trade marks have been used would entertain a reasonable doubt as to whether the coffee beverages and coffee each of Mr Richards and BSP supplies "come from the same source". The BSP trade marks, therefore, are deceptively similar to the Blackstar 976 trade mark.
(Footnotes omitted.)
Section 10 of the TM Act, headed "Definition of deceptively similar", provides that a trade mark is taken to be deceptively similar to another trade mark if it "so nearly resembles that other trade mark that it is likely to deceive or cause confusion". The essential task is one of trade mark comparison; the resemblance between the two marks must be the cause of the likely deception or confusion. In evaluating the likelihood of confusion, the marks must be judged as a whole, taking into account both their look and their sound.
The principles for assessing whether a mark is deceptively similar to a registered trade mark under s 120(1) are well established. In Australian Woollen Mills Ltd v F S Walton & Co Ltd, Dixon and McTiernan JJ explained the task in these terms:
"But, in the end, it becomes a question of fact for the court to decide whether in fact there is such a reasonable probability of deception or confusion that the use of the new mark and title should be restrained.
In deciding this question, the marks ought not, of course, to be compared side by side. An attempt should be made to estimate the effect or impression produced on the mind of potential customers by the mark or device for which the protection of an injunction is sought. The impression or recollection which is carried away and retained is necessarily the basis of any mistaken belief that the challenged mark or device is the same. The effect of spoken description must be considered. If a mark is in fact or from its nature likely to be the source of some name or verbal description by which buyers will express their desire to have the goods, then similarities both of sound and of meaning may play an important part."
The question to be asked under s 120(1) is artificial - it is an objective question based on a construct. The focus is upon the effect or impression produced on the mind of potential customers. The buyer posited by the test is notional (or hypothetical), although having characteristics of an actual group of people. The notional buyer is understood by reference to the nature and kind of customer who would be likely to buy the goods covered by the registration. However, the notional buyer is a person with no knowledge about any actual use of the registered mark, the actual business of the owner of the registered mark, the goods the owner produces, any acquired distinctiveness arising from the use of the mark prior to filing or, as will be seen, any reputation associated with the registered mark.
The issue is not abstract similarity, but deceptive similarity. The marks are not to be looked at side by side. Instead, the notional buyer's imperfect recollection of the registered mark lies at the centre of the test for deceptive similarity. The test assumes that the notional buyer has an imperfect recollection of the mark as registered. The notional buyer is assumed to have seen the registered mark used in relation to the full range of goods to which the registration extends. The correct approach is to compare the impression (allowing for imperfect recollection) that the notional buyer would have of the registered mark (as notionally used on all of the goods covered by the registration), with the impression that the notional buyer would have of the alleged infringer's mark (as actually used). As has been explained by the Full Federal Court, "[t]hat degree of artificiality can be justified on the ground that it is necessary in order to provide protection to the proprietor's statutory monopoly to its full extent".
...
A trade mark is deceptively similar if it "so nearly resembles" the other trade mark that it is "likely to deceive" or "cause confusion". "[D]eceive[d]" implies the creation of an incorrect belief or mental impression; "caus[ing] confusion" may merely involve "perplexing or mixing up the minds" of potential customers. Intention to deceive or cause confusion is not required, although if present may be a relevant consideration. Similarly, evidence of actual cases of deception or confusion is of great weight, but not essential.
The usual manner in which ordinary people behave must be the test of what confusion or deception may be expected, having regard to the character of the customers who would be likely to buy the goods. As explained by Dixon and McTiernan JJ in Australian Woollen Mills, potential buyers of goods are not to be credited with "any high perception or habitual caution"; however, "exceptional carelessness or stupidity may be disregarded".
It is not necessary to establish actual probability of deception or confusion. But a mere possibility of confusion is not enough; there must be a real, tangible danger of deception or confusion occurring. It is enough if the notional buyer would entertain a reasonable doubt as to whether, due to the resemblance between the marks, the two products come from the same source. Put another way, there must be "a real likelihood that some people will wonder or be left in doubt about whether the two sets of products ... come from the same source".
In considering the likelihood of confusion or deception, "the court is not looking to the totality of the conduct of the defendant in the same way as in a passing off suit". In addition to the degree of similarity between the marks, the assessment takes account of the effect of that similarity considered in relation to the alleged infringer's actual use of the mark, as well as the circumstances of the goods, the character of the likely customers, and the market covered by the monopoly attached to the registered trade mark. Consideration of the context of those surrounding circumstances does not "open the door" for examination of the actual use of the registered mark, or, as will be explained, any consideration of the reputation associated with the mark.
(Emphasis original; citations omitted.)
The relevant question is whether the impugned sign is deceptively similar to the registered trade mark having regard to the goods in respect of which that mark is registered. In that regard, it is necessary and appropriate for the Court to consider the course of business and the way in which the particular class of goods are sold. This gives the setting, and the habits and observations of the ordinary consumer considered in the mass affords the standard, to determine whether the impugned mark is, properly judged, deceptively similar: Australian Woollen Mills at 658.
It is relevant to consider such contextual matters in order to set the broad standard of analysis by reference to the likely behaviour of the ordinary consumer. Typically, the characteristics of that consumer may be discerned from:
(a) whether or not the goods are expensive or of personal or intimate interest, in which case closer attention may be given to detail of trade marks;
(b) whether or not the goods are cheaper or a fast moving consumer good where the consumer may be less involved and pay less attention to trade marks;
(c) how the goods are promoted and acquired which may indicate the relevance and importance of aural or visual aspects of the mark; and
(d) the outlets from which goods of the class are typically acquired, which may indicate how trade marks are likely to be displayed and perceived.
As Australian Woollen Mills makes clear, the comparison takes place in a particular context in accordance with a particular standard: "the course of business and the way in which the particular class of goods are sold" gives the setting and "the habits and observation of men considered in the mass" affords the standard in determining whether the impugned mark is, properly judged, "deceptively similar".
When considering the question of deceptive similarity, each mark must be compared as a whole. This is of particular significance in relation to composite marks and device marks which may consist of a number of elements. It is necessary to look at all these elements in their context. This will include the size, prominence and stylisation of words and device elements used in the mark and their relationship to each other. The impression created by the mark, considered as a whole, can only be determined by doing this. However, in this connection, it is recognised that deceptive similarity may be established when an impugned mark uses an "essential" or "distinguishing" feature of the mark as registered...
(Citations omitted.)
If attention is confined to the 1995 mark itself, it is in our opinion very difficult to characterise the words "CRAZY JOHN" as an essential feature. The words form but part of a composite mark comprising a number of elements. The words themselves are not especially prominent and indeed are subsidiary to the fantasy character, which occupies the dominant position in the overall image. If anything, the words seem to identify the fantasy character, having regard to the deranged look on his face. The words also compete for attention with the letters "MW" which themselves occupy a central position on the stylised globe.
[A]lthough everything depends on the particular circumstances of the case, some caution needs to be exercised before characterising words in a complex composite registered trade mark as an 'essential feature' of that mark in assessing the question of deceptive similarity. If such a characterisation is made too readily, it effectively converts a composite mark into something quite different...
(1) the BSP stores are specialty bakeries which prepare and sell coffee beverages and sell coffee beans in packets in those stores along with cakes, pastries and other baked goods, the latter being its core business;
(2) it is common practice for bakery businesses to sell coffee together with baked goods;
(3) the brand or source of the coffee prepared and served in stores such as bakeries may be depicted on the coffee cups, on the menu or by other signage, such as on the coffee machine itself, or, in the case of coffee beans, by labels;
(4) products of the kind covered by the registration of the Blackstar 833 trade mark are inexpensive, and they are fast moving consumer goods. In the case of coffee beverages, in particular, the notional buyer of such products (who is an ordinary consumer) is not going to linger over, or pay close attention to, the trade mark used in relation to these goods.
The Respondent appeals from those parts of his Honour's reasons for judgment in the Federal Circuit and Family Court of Australia (Division 2) proceeding BRG 209/2023 given on 1 August 2025 reported as Richards v Black Star Pastry Pty Ltd (No 2) [2025] FedCFamC2G 1226 (J), that the:
(a) Appellant's trade mark Australian Registered Trade Mark No. 1953012 (the 012 mark), and its equivalent mark referred to in the reasons as the "New BSP Logo", were not "substantially identical with" the Respondent's registered Australian Trade Mark No. 1172976 within the meaning of that term in the Act s 120.
(b) Respondent had abandoned all his claims for infringement of Australian Registered Trade Marks Nos. 1172976 (976 mark) and 128833 (833 mark) [sic] by the Appellant's Australian Registered Trade Mark No. 2057974 (the 974 mark).
The Respondent appeals from that:
part of the reasons at J[164], that the Appellant's 012 mark and the equivalent mark under Trade Marks Act 1995 (Cth) (the Act) s 7 , referred to in the reasons as the "New BSP Logo" were not "substantially identical with" the Respondent's registered Australian Trade Mark No. 1172976 within the meaning of that term in the Trade Marks Act 1995 (Cth) s 120.
part of the reasons at J[214] to J[220] that the Respondent had abandoned all his claims for infringement of the Respondent's 976 mark and 833 mark by the Appellant's use of its 974 mark under the Trade Marks Act 1995 (Cth) (the Act) s 120.
In all other respects the judgment in the Federal Circuit and Family Court of Australia (Division 2) proceeding BRG 209/2023 given on 1 August 2025 reported as Richards v Black Star Pastry Pty Ltd (No 2) [2025] FedCFamC2G 1226 is affirmed.
(Emphasis original.)
A. Infringement of the 976 mark under s 120 of the Act
The primary judge correctly identified the method in determining whether the 012 mark and the New BSP Logo were substantially identical with the 976 mark, the method described by Windeyer J in The Shell Company of Australia Limited v Esso Standard Oil (Australia) Ltd [1963] HCA 66; (1963) 109 CLR 407, at page 415 (the side-by-side comparison) (J "SCHEDULE - INFRINGEMENT OF TRADE MARKS - PROVISIONS AND PRINCIPLES" [28]). However, the primary judge erred in the application of the side-by-side comparison by:
(a) including in the comparison between on the one hand the Respondent's 976 mark, and on the other hand the Appellant's word mark the 012 mark and the "New BSP Logo" the word "pastry".
(b) finding that the inclusion of the word "pastry" was the determinative factor that the Appellant's marks were not substantially identical with the Respondent's 976 mark.
Particulars
In the side-by-side comparison:
(a) the essential elements or cognitive clues should be compared, and the word "pastry" should not be included in the comparison because it is not, for the purpose of the side-by-side comparison, an essential element or cognitive clue of the 012 mark and the New BSP Logo.
(b) the word "pastry" should not have been included in the comparison because in the context of the Appellant's mark, the word "pastry" is a mere descriptive element and not likely to perform the distinguishing role required in respect of the relevant goods and services.
The primary judge ought to have held that the Appellant's word mark the 012 mark and the "New BSP Logo" were substantially identical to the Respondent's 976 mark for the purpose of the Trade Marks Act s 120.
(Emphasis original.)
In determining whether the BSP012 and New BSP Logo are substantially identical with either of the Blackstar trade marks, it is necessary to compare the trade marks side by side, note their similarities and differences, and the importance of the similarities and differences having regard to the essential features of the Blackstar trade marks, and the total impression of resemblance or dissimilarity that emerges from the comparison. "Substantial identity" requires "a total impression of similarity to emerge from a comparison between" the Blackstar trade marks, on the one hand, and the BSP012 trade mark and New BSP Logo, on the other.
...
A comparison of the Blackstar 976 trade mark, on the one hand, and each of the BSP202 and BSP011 trade marks, on the other, also does not produce a total impression of similarity. The Blackstar 976 trade mark is comprised of words, while each of the BSP202 and BSP011 trade mark is a composite mark. It is a more difficult question whether a comparison of the Blackstar 976 trade mark and each of the BSP012 trade mark and New BSP Logo produces a total impression of similarity. A strong consideration in favour of answering that question in the affirmative is the presence in each of the trade marks and logo of the non-descriptive words "Black Star". The presence of the descriptive word "Pastry" in the BSP012 trade mark and the New BSP Logo is likely to generate a relatively small impression on the viewer when read with "Black Star" or "Blackstar". On balance, however, I am not satisfied that a comparison produces a total impression of similarity, and that is because of the presence of "Pastry" in the BSP012 trade mark and the New BSP Logo.
(Citations omitted.)
On 18 May 2022 BSP secured the registration of the following trade mark (BSP974 trade mark), effective from 17 December 2019:
The BSP974 trade mark is registered in class 30 (among other things) for "bakery products, bread, foodstuffs made from dough; foodstuffs made with flour; biscuits; cakes; pastries; donuts; croissants; pastry; sandwiches; coffee; tea; chocolate".
In the statement of claim Mr Richards alleges that the BSP974 trade mark is substantially identical with or deceptively similar to the Blackstar trade marks.
In its final closing submissions, BSP submits that Mr Richards, by his counsel, did not open any case in relation to the claims made in the statement of claim regarding the cancellation of the BSP974 trade mark pursuant to s 44 or s 60 of the TM Act.
In opening submissions, counsel for Mr Richards said that the BSP974 trade mark "will not take a high role in the proceeding because our evidence is it's not widely used; it is used in some shops in the merchandising section, predominantly". In his counsel's closing written submissions, Mr Richards submitted as follows:
The '974 trade mark is not a significant mark. It is what might be referred to as a "limping mark". It depends on the main BLACKSTAR PASTRY MARK for its existence. It is relatively new compared to the initial marks used by Mr Thé.
And in closing submissions, counsel for Mr Richards said:
The pleadings for the respondent make that criticism of Mr Richards in respect of the 974 mark, "BLKSTR", that he didn't appeal. But it's not the main game. The main game are those three - the two logo marks and the word mark.
I am satisfied that Mr Richards has abandoned all claims made in the statement of claim in relation to BSP's registration and use of the BSP974 trade mark.
(Emphasis original., footnotes omitted.)
In his pleadings, the Applicant has made various other assertions regarding bases for cancellation of the 202, 011, 012 and 974 marks. None of these other bases are addressed in the Applicant's outline of submissions, and so it is assumed that they are not pressed. If the Applicant intends to press any of those other claims, he should indicate this in opening and identify the basis on which any of the other claims are pressed.
(Emphasis added.)
(1) leave to appeal will be granted;
(2) the declaration and injunctive relief as ordered by the primary judge and insofar as they relate to the Blackstar 976 trade mark will be set aside, and the order made by the primary judge (being order 4 of the Orders dated 11 September 2025) concerning an inquiry to assess damages or account of profits with respect to infringement of the Blackstar 976 trade mark will be set aside;
(3) the declaration and injunctive relief as ordered by the primary judge and insofar as they relate to the Blackstar 833 trade mark will be set aside, and the order made by the primary judge (being order 4 of the Orders dated 11 September 2025) concerning an inquiry to assess damages or account of profits with respect to infringement of the Blackstar 833 trade mark will be set aside;
(4) the cross-appeal will be dismissed.
(1) Order 1 of the Order of the primary judge dated 1 August 2025 will be set aside and in lieu thereof, it will be declared that:
(a) Mr Richards was not the owner of Australian trade mark number 1172976 (within the meaning of s 58 of the Trade Marks Act) as at the priority date of that trade mark;
(b) Australian trade mark number 1172976 is and has at all material times been invalid.
(2) Pursuant to s 88(1) of the Trade Marks Act, Australian trade mark number 1172976 be cancelled or otherwise removed from the Register of Trade Marks.
(3) The declarations in paragraphs 3 and 4 of the Order of the primary judge dated 1 August 2025 be set aside and in lieu thereof, the application be dismissed.
(4) Orders 2, 3 and 4 of the Order of the primary judge dated 11 September 2025 be set aside.
(5) The orders in (1) to (4) be stayed until:
(a) the expiry of 14 days from the date of these orders; or
(b) if an application for special leave to appeal is filed within 14 days from the date of these orders, the final determination of that application if special leave is not granted or, if special leave is granted, the subsequent final determination of any appeal.
I certify that the preceding one hundred and twenty-five (125) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Downes.
Black Star Pastry Pty Ltd
Richards
(2024) 306 FCR 199
(2017) 251 FCR 379
(2010) 89 IPR 457
(2018) 259 FCR 514
(2015) 116 IPR 159
(2012) 202 FCR 490
(2004) 61 IPR 212
(2018) 262 FCR 76
(2010) 240 CLR 590
(2013) 216 FCR 197
(1999) 47 IPR 47
(2021) 285 FCR 598
(2023) 277 CLR 186
(1963) 109 CLR 407