Deceptively similar marks?
41 Section 10 is as follows:
10 Definition of deceptively similar
For the purposes of this Act, 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.
42 There was substantial agreement between the parties on the applicable principles. The differences between them were ones of emphasis and, of course, on the application of the principles to the competing marks in this case.
43 The question of deceptive similarity should not be considered separately from the question of similarity of the competing sets of goods. The correct approach is to make one practical judgement, recognising that whether the resemblance between the marks renders them deceptively similar depends upon the nature and degree of that resemblance and the similarity between the goods in question: Registrar of Trade Marks v Woolworths [1999] FCAFC 1020; 93 FCR 365 at [39]-[40].
44 The question for me is whether a number of Australian consumers who see or hear the VAGISAN marks used in relation to the VAGISAN goods, and who have an imperfect recollection of the VAGISIL marks (Reckitt & Colman (Australia) Ltd v Boden [1945] HCA 12; 70 CLR 84 at 89 and 98) and do not have an opportunity to compare the respective marks side-by-side (Shell Company of Australia Ltd v Esso Standard Oil (Australia) Ltd [1963] HCA 66; 109 CLR 407 at 415-416), are at a real risk (that is, a finite and non-trivial risk) of being confused (Woolworths at 426). That includes being left in doubt or caused to wonder (Southern Cross Refrigeration at 594-595) or to be perplexed or mixed up (Coca-Cola Company v All-Fect Distributors Ltd [1999] FCA 1721; 96 FCR 107 at [39]) as to whether it might not be the case that the parties' respective products come from the same source.
45 No intention to deceive or cause confusion is required - a mark can be deceptive without being used deceitfully: Re Bali Brassiere Co Inc's Registered Trade Mark and Berlei Ltd's Application [1968] HCA 72; 118 CLR 128 at 139. Importantly, little assistance is to be obtained from a meticulous comparison of the two words, letter by letter and syllable by syllable, pronounced with the clarity to be expected from a teacher of elocution: Aristoc Ltd v Rysta Ltd [1945] AC 68 at 86-87, 95, 99 and 104; Reckitt & Colman at 98.
46 It is not insignificant that s 10 refers to the relevant marks being deceptively similar if the one "so nearly resembles" the other that it is likely to deceive or cause confusion. A near resemblance between the marks is required, and that the near resemblance is the cause of the likely deception or confusion.
47 Combe relied on the following similarities between the VAGISAN mark and the VAGISIL marks:
(1) they all have the same first five letters, VAGIS;
(2) in each of the marks, VAGIS is followed by two more letters, so that each mark is seven letters long;
(3) they each have three syllables - VA and GI being the first two and the same and then the third in each case starting with the same letter, S;
(4) the VAGIS part of each of the marks would be pronounced the same way; and
(5) all of the marks (except for 1490519 and 1494391) are word marks, so that they can be used with any stylisation.
48 There was some debate about the ordinary pronunciation of the word VAGISAN and what the natural syllables are. Combe tendered and played a recording of a radio commercial for VAGISIL Feminine Wash. It also tendered recordings of radio and television advertisements for other VAGISIL products. In my assessment, the way in which VAGISIL is pronounced in each case breaks up the syllables as follows, VAG·I·SIL. A similar pronunciation of VAGISAN seems to me to be most natural, i.e. VAG·I·SAN. That pronunciation gives recognition to VAG as a distinct sound which, as I identified at the outset, references the vagina. But even if the word is most naturally pronounced VA·GI·SAN, as was submitted, the distinct element comprised of the first two syllables, VAGI, also obviously references the vagina.
49 In my view, in respect of both the VAGISAN mark and the VAGISIL marks, the central idea conveyed by the marks is the vaginal reference. They are likely to be understood as being associated with products that have something to do with the vagina.
50 However, that is not to say that the distinctive features of the marks are the same. The central idea, VAG, or even VAGI, is descriptive. It is what follows that is distinctive. In the case of the VAGISAN mark it is the idea or association conveyed by SAN which I regard to be readily understood as a reference to sanitary or some other word of similar derivation such as sanify or sanitation. It thus conveys an association with health and cleanliness.
51 The VAGISIL marks do not have the same distinctive feature. The descriptive element, VAG, or VAGI, is the same but the suffix SIL does not convey anything in particular. SIL as a suffix is, however, not unknown in the market. As indicated above, Combe invented and for many years marketed the well-known product CLEARASIL before selling it, and it trades a pharmaceutical or healthcare product known as VALIDOSIL. The descriptive element of VAGISIL, VAG or VAGI, is not the distinctive element precisely because it is descriptive. It is what comes with it, and the combination of the two, that is distinctive about the mark.
52 The VAGISIL mark 1494391 which includes the "V" device was said to reference, by its shape, the female groin area. That is certainly a strong and plausible association. It may also be that the elements of the "V" are seen to reference leaves of a tree or shrub and thereby convey freshness or something natural. Some people may also see the device merely as a stylised 'V' for VAGISIL. In any event, the combined mark is quite distinctive and different from the VAGISAN word mark.
53 This case is different from E & J Gallo where it was held (at [77]) that the use of the image of a barefoot with the words BAREFOOT RADLER did not sufficiently distinguish that mark from the word mark BAREFOOT. That was because the use of the image of a barefoot would be more likely to reinforce the significance or prominence of the word BAREFOOT. In the present case, the "V" device does not play that role in relation to the whole of the word VAGISIL, and it is questionable whether it even plays that role in relation to the prefix VAG.
54 The VAGISIL mark 1490519 which includes the words "The Expert in Intimate Skincare" is distinct from the VAGISAN mark because of the addition of those words. But in any event, even if those words are regarded as adding only little more because of their descriptive nature, for the reasons already given, in my view the words VAGISIL and VAGISAN are not deceptively similar. That is substantially because the distinctiveness of the mark comes from SIL in the neologism VAGISIL.
55 In the above regard, where the common element of two marks is descriptive or of limited distinctiveness or in common use in the trade, it should be paid less attention, and greater weight must be given to the additional features of the marks in question. For example, in Mond Staffordshire Refining Co Ltd v Harlem [1929] HCA 6; 41 CLR 475 at 477 the High Court held that MONSOL and MULSOL were not deceptively similar in part because of the common use in the trade of the suffix "-sol" in relation to medicines and pharmaceutical preparations.
56 Further, in MID Sydney the Full Court held that CHIFLEY was not deceptively similar to THE CHIFLEY TOWER in part because the word Chifley was in common usage in relation to several different applications of which the ordinary person would be regarded as having some knowledge (at 246D-E). See also REA Group Ltd v Real Estate 1 Ltd [2013] FCA 559; 217 FCR 327 at [246].
57 In Australian Meat Group Pty Ltd v JBS Australia Pty Ltd [2018] FCAFC 207; 363 ALR 113, an infringement case, the Full Court compared the word marks AMG and AMH (at [80]ff). It was a relevant consideration that the letters "AM" in the acronym AMH would be understood in the Australian meat industry as an obvious contraction of "Australian Meat" (at [85]). It was held that the primary judge had placed too much significance on the "AM" component of the AMH word mark and the AMG word mark when concluding that they were deceptively similar marks, particularly in discounting the significance to be attached to the distinguishing last letters "H" and "G" respectively (at [88]).
58 As with OPTUM and OPTUS in Singtel Optus Pty Ltd v Optum Inc [2018] FCA 575; 140 IPR 1 (at [138]), whilst VAGISAN and VAGISIL are both single words with the same prefix, the words do not have a close phonetic resemblance and neither of the words lends itself to mispronunciation. Moreover, whilst the words only differ in the last letters, both words are invented words and the suffixes SIL and SAN are quite distinct.
59 Insofar as aural similarity is concerned, I do not consider that VAGISIL and VAGISAN are sufficiently close in the way in which they sound to give rise to confusion. Although the initial sounds VAG and I or VA and GI are the same, SIL and SAN are quite distinct. The result is that the word marks sound quite different from each other compared to other marks that have been held to be deceptively similar at least in part because they sound the same or very similar. Examples are VAPORUB and VAPOUR RUB (De Cordova v Vick Chemical Company (1951) 68 RPC 103; 1B IPR 496); DITHANE and DITRENE (Shell Company of Australia Ltd v Rohm and Haas Co [1948] HCA 27; (1949) 78 CLR 601); BURLEY and BARLEY (Berlei Hestia Industries Ltd v The Bali Company Inc [1973] HCA 43; 129 CLR 353); and TIVO and VIVO (Vivo International Corporation Ptd Ltd v Tivo Inc [2012] FCAFC 159; 99 IPR 1).
60 The parties referred to limited evidence that may be relevant to the question of deceptive similarity.
61 During the cross examination of Dr Wolff's export manager, Angela Thevessen, senior counsel for Combe elicited evidence to the effect that vaginal dryness is an embarrassing or taboo subject and that cross-culturally women differ substantially in the likelihood of discussing the issue with a physician. The implication is that the same is true of other vaginal maladies, real or perceived. Ms Thevessen's evidence was also that many women are embarrassed to buy products like that so when they go into stores they would tend to get the product, buy it and get out quickly without drawing attention to the purchase. There was also evidence of a survey conducted in Germany (exhibits AT-7 and AT-8) showing that more than half the purchasers of such products bought them without the advice or intervention of a healthcare professional.
62 There was a dispute about the admissibility of exhibits AT-7 and AT-8. I deal with that below where I deal with the admissibility of other survey evidence.
63 On the basis of Ms Thevessen's evidence, it was submitted on behalf of Combe that there is a greater likelihood of confusion between the respective products than what might otherwise be the case because the notional consumer is not likely to take time at the shelves to pay attention to differences that there may be between the mark on the goods in front of them and their imperfect recollection of the competing marks. Also, they are not likely to be guided by healthcare professionals in making their purchases.
64 The counterpoint to this argument, advanced on behalf of Dr Wolff, is that consumers of the types of products referred to in the evidence of Ms Thevessen are likely to be particularly discerning about, and to pay attention to, the products that they apply to their vulvas or in their vaginas. So, whilst such consumers may not linger at the shelves of the notional supermarket or pharmacy and study the product and its packaging carefully, and they may be embarrassed to raise the issue with a healthcare professional, they are likely to have made a study of the products available on the market and to know what product they intend to purchase in advance of entering the store.
65 Added to that is the consideration that in an era when these types of products are sold online - and even if they do not buy them online, the notional consumer would have easy access to information about the products online - a prospective purchaser will have ample opportunity to consider their purchase in private.
66 However, these submissions and the evidence underlying them seem to me to miss the point. What is at issue here is the competing marks, being the VAGISAN mark and the VAGISIL marks, in respect of the goods for which the VAGISAN application is made and the VAGISIL marks are registered. In the case of VAGISAN, those goods are by no means limited to intimate healthcare products of the nature of those actually presently traded by both Dr Wolff and Combe under their respective marks. That is to say, little weight can be given to a consideration of the actual products and the specific circumstances in which they are likely to be bought. What must be considered is the full range of goods covered by the prospective registration and the existing registrations: MID Sydney at 246F. In the case of the former, they are not necessarily of the type that might be bought furtively or with some embarrassment - "soaps", "cosmetics", "pharmaceutical products" and "dietetic substances for medical purposes" are by no means necessarily goods of that nature.
67 The point is that although, in considering whether there is a likelihood of deception or confusion, all surrounding circumstances have to be taken into consideration which include the circumstances in which the mark will be used, that must be considered in respect of all the goods coming within the specification in the application and in respect of which registration is desired, not only in respect of those goods on which it is proposed to immediately use the mark. The question is not limited to whether a particular use will give rise to deception or confusion. It must be based upon what the applicant can do if registration is obtained. See Berlei Hestia at 362; Campomar Sociedad Limitada v Nike International Ltd [2000] HCA 12; 202 CLR 45 at [72]; Telstra Corporation Ltd v Phone Directories Company Australia Pty Ltd [2015] FCAFC 156; 237 FCR 388 at [192(9)].
68 In any event, I do not consider that the evidence establishes that consumers of the type of products in question are not likely to pay particular attention to what they are purchasing. The proposition that a woman is likely to pay little attention to the particulars of any product that she might put in her vagina or on her vaginal area inherently lacks credibility.
69 Senior counsel for Combe also elicited from Ms Thevessen evidence to the effect that in the United Kingdom Dr Wolff currently retails its 200ml VAGISAN Intimate Wash Lotion for £9.99 and its 50g VAGISAN Moisturising Cream for £14.99. Ms Thevessen was not able to say at what price those products might be sold for in Australia in the event that Dr Wolff enters the Australian market. There was also evidence that VAGISIL products were sold in Australia before the priority date for between $1.24 and $10.23.
70 On the basis of that evidence, it was submitted on behalf of Combe that the inference is that the products are high-volume, low-value products with the result, once again, that a typical consumer is not likely to spend much time or attention on the particular mark on the product and the differences between that mark and the competing mark of which they have a notionally incomplete memory.
71 Leaving aside the evidence on this question, which seems to be particularly weak given the different markets (United Kingdom and Australia), unproven exchange rates and the absence of any evidence on likely retail sale prices in Australia, and that the actual products presently traded by VAGISAN are not particularly relevant to the enquiry, I accept that the types of products described in the specifications are most likely of a high-volume, low-value nature. Experience suggest that that is generally the nature of products within the product descriptions for which Dr Wolff seeks registration. Whilst the Australian dollar equivalent of a product sold at £14.99 is likely to be sufficient to cause the average consumer to pause and possibly even to plan before buying it, it is not a high value good that might ordinarily require savings or borrowings. There is therefore some force in the submission but I do not consider that it outweighs the other considerations I have identified.
72 Dr Wolff adduced evidence that even at the priority date there were many registrations of marks in classes 3 and 5 that incorporate VAGI or VAG. Combe countered by pointing out that in respect of most of those marks there was no evidence that they had any reputation in the market as actually being used and that the ordinary consumer would therefore not be familiar with them. On that basis, it was contended, they cannot feature in an assessment of likely confusion. There was, however, evidence of the sale of products, albeit in small quantities, in pharmacies as at the priority date under the names VAGICARE, VAGITEST and ECOVAG in the category "feminine care".
73 It has been recognised that the state of the register does not establish what is actually happening out in the market and that comparison with other marks on the register is in principle irrelevant when considering a particular mark that has been tendered for registration: Ocean Spray Cranberries Inc v Registrar of Trade Marks [2000] FCA 177; 47 IPR 579 at [35] citing British Sugar plc v James Robertson & Sons Ltd [1996] RPC 281 at 305. See also 1-800-Flowers.Com Inc v Registrar of Trade Marks [2012] FCA 209; 201 FCR 488 at [41].
74 The significance of the evidence of the registrations and the limited sales of the limited products is not in relation to the knowledge or understanding of the ordinary consumer of existing trade marks and therefore of their capacity for confusion. It is rather in its support of the notion that the word or prefix VAG or the prefix VAGI- are likely to be understood by the ordinary consumer to be references to the vagina, and are therefore descriptive. The fact that many traders seek to register VAG or VAGI in relation to particular types of feminine healthcare products is indicative of that likely understanding.
75 For the above reasons, I conclude that Combe has not established the second component of its s 44 ground of opposition, namely that the VAGISAN mark is deceptively similar to the VAGISIL marks.