Closely related services
106 The notions of "closely related services" in the context of goods and, correspondingly, "closely related goods" in the context of services, derive from amendments introduced into the Trade Marks Act 1955 (Cth) (the 1955 Act) by the Trade Marks Amendment Act 1978 (Cth) which provided, principally, for the registration of trade marks in relation to services.
107 Writing in 1979, the then Registrar of Trade Marks and Designs, Mr F J Smith, said with respect to the amendments made to s 33 of the 1955 Act:
More extensive amendments have been necessary, particularly in those sections where allowance must be made for the possibility of conflict between a "goods mark" and a "service mark". For example, the Act extends the grounds for prohibition of registration of identical and deceptively similar trade marks set down in s. 33 of the principal Act. The amended section allows for the added possibility of conflict between marks used in relation to the same services or services of the same description, and of conflict between marks used in relation to services and to closely related goods, and vice versa.
See, Smith FJ, "The Trade Marks Amendment Act 1978" (1979) 53 ALJ 118, 119.
108 Section 33(1) and (2) of the 1955 Act are the predecessors of s 44(1) and (2) of the present Act and, upon amendment, were in broadly similar terms.
109 In his paper (at 119), Mr Smith gave the following examples of where conflict between competing marks for goods and services might arise:
It is evident that in certain cases there is likely to be confusion if similar trade marks are used by different proprietors, one for services and the other for goods. So for example, the use of identical or deceptively similar marks in respect of prepared foods and in respect of a take-away food service would suggest that both the goods and the service might be attributed to the same source. Motor vehicles and a vehicle hire service, cosmetics and beauty salon services, insecticides and pest eradication services are other examples. These are all likely to fall within the concept of "closely related goods and services" as it will occur in ss. 23, 33 and 36 of the amended Act.
110 Speaking of the required relationship between the goods and services, Mr Smith said (at 120):
… It will be an exercise of the Registrar's judgment and ultimately of his discretion whether goods and services are closely related. The relationship would have to be close, not merely a tenuous or remote connection. Where the services are performed upon, or in relation to, or even by means of certain goods, this is a factor which would make deception or confusion between marks used in respect of those services and goods more likely.
111 In Registrar of Trade Marks v Woolworths Ltd (1999) 93 FCR 365; [1999] FCA 1020 (Woolworths), French J (with whom Tamberlin J agreed) said (at [37]):
… The term "closely related" recognises that goods and services are different things. There will be classes of goods which are similar to each other. There will also be classes of services which are similar to each other. But the word "similar" does not apply as between goods and services. So there must be some other form of relationship between the services covered by one mark and the goods covered by another to enable the goods or services in question to be described as "closely related". …
112 His Honour also said in this connection that "closely related" was of wider import than "similar".
113 Woolworths was a case arising under s 44(2) of the Act. Thus, the question was whether, in the case of a mark for services, there was conflict with a previously registered mark for "closely related goods". His Honour gave (at [38]) the following illustrations where goods and services might be "closely related":
Services which provide for the installation, operation, maintenance or repair of goods are likely to be treated as closely related to them. Television repair services in this sense are closely related to television sets as a class of goods. A trade mark used by a television repair service which resembles (to use the language of s 10) the trade mark used on a prominent brand of television sets could be deceptively similar for suggesting an association between the provider of the service and the manufacturer of the sets. …
114 His Honour also made reference to Caterpillar Loader Hire (Holdings)Pty Ltd v Caterpillar Tractor Co (1983) 77 FLR 139; [1983] FCA 143 (Caterpillar) in which Lockhart J said (at 150):
… It is obvious that there is likely to be confusion if substantially the same or deceptively similar trade marks are used by different proprietors, one for goods and the other for services, where the goods and services are closely related. Examples that present practical difficulties are the sale of goods such as data processing equipment and the sale of programs for their operation; the sale of curtains and furnishing materials on the one hand, and the sewing of curtains on the other, as interior decorators often sell curtains and perform the service of sewing; the sale of clothes on the one hand and tailoring on the other because the service of custom tailoring is frequently provided in addition to the sale of ready-made clothes; and the sale of educational material on the one hand and educational services (language courses, home study programs) on the other.
115 Significantly, in Woolworths, French J (at [38]) also said that the range of relationships between goods and services which may support the designation "closely related" will be "limited by the requirement in s 44(2) that there be a substantial identity or deceptive similarity between the potentially conflicting marks which attach to them". This observation might suggest that his Honour had in mind that, in a case arising under s 44 of the Act, the determination of whether the goods and services are "closely related" will be informed by the determination of whether the competing marks are, in fact, deceptively similar. However, at [38] his Honour continued by stating that "[t]he relationships may, and perhaps in most cases will, be defined by the function of the service with respect to the goods" (emphasis added). It was in this context that his Honour gave the examples quoted at [113] above and referred to the examples given by Lockhart J in Caterpillar. This part of his Honour's reasoning suggests that the question of whether goods and services are "closely related" is a discrete question within the injunction against registration provided by s 44 of the Act.
116 This understanding is supported by the following passage in [39] of his Honour's reasons:
… Apposite to the present case is the question whether a retailer of various classes of goods provides a service to customers which warrants the description of the goods for sale as "closely related goods" in respect of that service. The characterisation of the relationship between services and goods in this way is evaluative. The logic of s 44(2) suggests that the determination whether goods are closely related to the services in question is logically antecedent to the determination whether the trade mark in respect of the services is deceptively similar to that in respect of the goods. Wilcox J at first instance in this case saw the questions as "conceptually distinct" but accepted that one could not be addressed in isolation from the second: "The closer the relationship between the services and particular goods, the more likely any similarity in marks will prove deceptive." This approach is not greatly assisted by the language of s 10 which, like s 6(3) of the 1955 Act, defines deceptive similarity solely in terms of the degree of resemblance of the trade marks in question and whether that degree of resemblance is "likely" to deceive or cause confusion. But that definition must, in the context of s 44, be applied to the case of "closely related" goods and services.
117 His Honour concluded at [40]:
In the end there is one practical judgment to be made. Whether any resemblance between different trade marks for goods and services renders them deceptively similar will depend upon the nature and degree of that resemblance and the closeness of the relationship between the services and the goods in question. It will not always be necessary to dissect that judgment into discrete and independent conclusions about the resemblance of marks and the relationship of goods and services. Consistently with that proposition, the Registrar or a judge on appeal from the Registrar could determine in a particular case that, given the limited degree of resemblance between the relevant marks he or she could not be satisfied, no matter how closely related the goods and services concerned, that the use of the applicant's marks would be likely to deceive or to cause confusion.
118 The practical judgment to which his Honour referred in the last passage is, quite clearly, the judgment involved in determining whether the two marks are deceptively similarity. The passage marks his Honour's acceptance that the question of deceptive similarity between allegedly conflicting marks will be informed, in part, by the closeness of the relationship between the goods and services in respect of which the marks severally are, or are sought to be, registered. I do not accept that his Honour was there directing attention to the judgment involved in determining whether given goods and services are "closely related" as such.
119 I mention these matters because the appellant submitted that the question of whether, for the purposes of s 44(1) of the Act, the services of the prior registered mark are "closely related" to the goods in respect of which registered is sought is "intimately bound up with the question of whether the two marks are substantially identical or deceptively similar". Whilst I accept that part of French J's analysis in Woolworths at [37]-[40] might be read in that way, I do not think, on balance, that this is what his Honour was saying. Rather, I think that, particularly in [40] of his reasons, his Honour was addressing the calculus for determining, within the context of a s 44 objection, the question of deceptive similarity, not the question of whether goods or services are "closely related". This was the point of his Honour saying that "it will not always be necessary to dissect that judgment" - that is, whether the resemblance between the marks renders them deceptively similar - "into discrete and independent conclusions about the resemblance of marks and the relationship of goods and services". As his Honour then explains, this is because the Registrar or the Court might be satisfied, in the given case, that, on comparison, the marks are so dissimilar that deception or confusion is unlikely to arise, regardless of the closeness of the relationship between the goods and services.
120 The matter can be tested in this way. Take the case of a mark registered for communication services. Can it be suggested seriously that an application for the very same mark in respect of, say, veterinarian supplies, has the consequence for s 44 of the Act that the communication services and veterinarian supplies are "closely related" because the marks are identical? Other examples abound.
121 The appellant argued its case on the basis that, when considering whether the services in respect of which the 1984 kangaroo/tail fin mark are registered are "closely related" to the respondent's goods, it is sufficient to confine attention to "merchandising" services. The appellant submitted that "merchandising" is concerned with or related to the promotion or sale of goods and services and may include, and "even primarily embrace, the selling or giving away of goods in connection with the promotion of a business' principal services". The appellant submitted that merchandising may also include the use of a brand or image from one product or service to sell another. The appellant argued that services like these are often provided by means of goods such as clothing and headwear.
122 In this connection, the appellant directed attention to the observation of the Hearing Officer in Smith v Car2go GmbH (2013) 104 IPR 359; [2013] ATMO 103 at [49] that goods such as clothing, headgear and footwear are commonly used by businesses as promotional merchandise and that deception or confusion may arise by virtue of the mistaken belief that such items are promoting the business of the opponent. In that case, the opponent's prior conflicting registrations included one for services somewhat oddly specified as "Promotion (advertising) of business" in Class 35. The Hearing Officer was persuaded that the s 44 objection was made out in respect of, amongst other things, an application for registration in respect of clothing, headgear and footwear in Class 25.
123 Based on everyday observation, I am prepared to accept, as a very general proposition, that clothing and headgear are typically used as promotional items. I am less accepting of the proposition that footwear is typically so used. Be that as it may, it would be wrong to focus on, say, clothing and headgear (or, indeed, even footwear) as promotional items to the exclusion of a great many other goods which are used, typically, as promotional items. Promotional items can cover a very wide range of goods. Indeed, in a practical sense, the range is limitless (although, no doubt, constrained by considerations of cost). The suitability of particular goods as promotional items - and the recognition of the public that such goods are promotional items - will, in part, be a function of the identity and nature of the goods or services being promoted and the occasion on which the promotional items are supplied.
124 At this stage of the analysis, it is important to concentrate on the specification of the prior, allegedly conflicting registration that is deployed in the s 44 opposition. This is particularly where the "services" of the prior registration are broadly defined and potentially all-encompassing because of the use in the specification of expressions such as "advertising, marketing and merchandising services" - the very services relied on here. So expressed, these services are not directed to the activity of advertising, marketing or merchandising in any particular line of trade or commerce or in respect of any particular goods or services. Literally, the services of "advertising, marketing and merchandising", individually or collectively, can be provided in respect of any goods or services whatsoever. So understood, how is it then said, based on the scope of the specification of the prior registration alone - for this is the analysis required by s 44 of the Act - that the specified goods or services are "related", or more still "closely related", to the goods or services for which application is made in respect of the opposed mark?
125 By way of contrast, consider a specification more closely circumscribed. One can readily understand the rationale for contending that television repair services are related, indeed "closely related", to television sets as a class of goods (the example provided by French J in Woolworths). Similarly, one can readily understand the rationale for contending that tailoring services and the sale of ready-made clothes are "closely related" and that educational services (language courses, home study programs and the like) and educational materials are also "closely related" (to take two of the examples provided by Lockhart J in Caterpillar).
126 What is it then, in the present case, that makes "advertising, marketing and merchandising services" and more particularly (on the appellant's case) "merchandising services", services that are "related" to "clothing; footwear; headwear; shirts; T-shirts" beyond the fact that each of the respondent's goods is capable of being, along with a vast range of other goods and services, the subject of "advertising, marketing and merchandising"? The answer is, in truth, nothing. The respondent's goods are no more and no less related to "advertising, marketing and merchandising services" than any other goods or services that can be advertised, marketed or merchandised. How then is it said that the appellant's services are "closely related" to the respondent's goods? The simple fact is that, in the present case, there is no close relationship between the two for the purposes of s 44(1)(a)(i) of the Act.
127 In submissions, the respondent argued that the appellant's case in this regard elided the distinction between goods and services. The respondent referred to Optical 88 Ltd v Optical 88 Pty Ltd (No 2) (2010) 275 ALR 526; [2010] FCA 1380 (Optical 88) at [221] in which I said that there is no principle of general application in Australian trade mark law that use of a mark in relation to retail services for goods is use in relation to the goods themselves.
128 I do not think that the appellant's case under s 44(1) of the Act proceeds on such an elision. However, the respondent's argument highlights a particular matter. The appellant's registration of the 1984 kangaroo/tail fin mark for "advertising, marketing and merchandising services" is for those services as a class of services, and nothing else. It is not a registration for the goods or services in respect of which the services of advertising, marketing and merchandising using the 1984 kangaroo/tail fin mark might be supplied or provided. This is an important conceptual distinction to be borne in mind. This is the reason why, for the purposes of s 44(1) of the Act, it is necessary for the appellant to establish that its services (in respect of which the 1984 kangaroo/tail fin mark is registered) and the respondent's goods (for which registration is sought) are "closely related". For the reasons I have given, the appellant has not established that requirement.
129 This finding is enough to dispose of this ground of objection. However, as I will now explain, this is one of those cases to which French J referred in Woolworths where the fate of this ground of opposition is not dependent on a finding about the degree of closeness between the goods and services to which allegedly conflicting marks are attached.