austlii:cth/ATMO/2025/222
General information, not legal advice.
ATMO
2025-10-31
Original judgment source is linked above.
Class 5: Dietetic substances adapted for medical use; vitamins and vitamin supplements; dietary and nutritional products (meal replacements) and supplements; minerals and mineral supplements; nutritional supplements; herbal remedies; protein supplements; none of the foregoing being soap, cleansing milk, shampoo, fragrances, cosmetics, perfumes, or preparations for the foregoing; all of the aforementioned being for dietetic and/or nutritional purposes
Provisions of paragraph 44(3)(b) and/or Reg 4.15A(3)(b) applied.
Class 32: bottled drinking water; sports drinks; powders used in the preparation of sports drinks
(collectively the goods of the McJenks Applications are referred to as the 'McJenks Goods')
Nathan James Bailey, sole director and company secretary of WHAV ('Bailey 3')
NB-01 to NB-43 (including Confidential Annexures NB-02 to NB-05, NB-19 to NB-21, NB-24 and NB-41)
GJ-01 to GJ-25 (including Confidential Annexure GJ-07B)
NB-42 to NB-54 (including Confidential Annexures NB-45 and NB-46)
NB-01 to NB-44 (including Confidential Annexures NB-02 to NB-05, NB-19 to NB-21, NB-24 and NB-41)
NB-42 to NB-53 (including Confidential Annexures NB-45, NB-46 and NB-48 to NB-51)
Class 5: Various medical, dietary and nutritional supplements[5]
Provisions of subsection 44(4) and/or Reg 4.15A(5) applied.
Provisions of subsection 44(4) and/or Reg 4.15A(5) applied.
NB-01 to NB-33 (including Confidential Annexures NB-02 to NB-05, NB-18 to NB-20, NB-23 and NB-30)
(collectively the 'Purchased Assets').
5. The assignment of the Challenged Mark to WHAV was recorded by the Trade Marks Office in July 2023 and a copy of the Confirmatory Assignment Deed is provided ('Assignment Deed').[11]
6. According to Bailey 3, the mark WONDER FOODS has been continuously used since 1982 in word form and in various logo forms as shown below:
* 1982-2005:
* 2005 to 2011:
* 2011 to 2018: Challenged Mark
* 2018: to present:
(collectively 'Vendor's Marks')
7. Bailey 3 attests that to the best of his knowledge, the Vendor legally retained control over the Vendor's Marks in relation to their goods until WHAV acquired the Purchased Assets. Since then, WHAV has legally retained control over the Vendor's Marks and continuously used and promoted the Vendor's Marks for the same goods. Bailey 3 declares that WHAV never relinquished ownership of the marks to McJenks or any other third party, nor were the Vendor's Marks abandoned before or after the sale of the Purchased Assets.
8. WHAV's Goods are sold through over 150 physical stores throughout Australia, online and through distributors including Go Vita with over 100 stores throughout Australia and Chempro with over 100 stores throughout Queensland. Confidential Annexure NB-04 of Bailey 3 sets out the income generated from sales of WHAV's Goods under the Challenged Mark from 2019 to 2024 and approximate advertising expenditure for promoting those products from 2020 to 2024. Also annexed to Bailey 3 are:
* invoices for the sale of WHAV's Goods from 2017 to 2024;
* various examples of promotional materials from 2014 to 2017 including product catalogues issued in 2016, 2017 and 2019;
* screenshots of various third party websites and distributors' websites illustrating WHAV's Goods for sale. Annexure NB-10 of Bailey 3 includes screenshots of distributors' websites dating from 2011; and
* screenshots of the Vendor's Website obtained using the Wayback Machine from 2014 to 2024.
9. Bailey 3 attests that the Vendor's Marks have been promoted on social media since 2014 Examples of use of WONDER FOODS on a new Facebook account set-up by WHAV and the other social media accounts acquired from the Vendor are provided together with examples of promotion of WHAV's Goods on the social media accounts of its stockists and distributors.
in classes 3, 5, 29, 30 and 32 on 13 August 2024 to 'further prepare for the sale of this branding package'.
in classes 5, 29, 30 and 32 on 10 November 2023. Bailey 1 attests that upon completion of the sale, all assets including the trade mark application (or registration) will be assigned to WHAV's customer.I would just like to explore the options available for Permalife.
I understand the business has now closed and there's no value left in the name. ('McDonald Statement').
(a) Considering GT's representations, as the administrator of Kova, as at 11 May 2023 Kova had abandoned its common law rights as:
i. if the common law rights still existed there must still be value in the name in respect of goodwill, but GT had said there was no value left in the name; and
ii. to transfer the common law rights, the business must be sold as a going concern, but GT had said the business has ceased trading and was not for sale (only the assets of the business), which means the business at common law had ceased to exist.
(b) Given the Kova Registration was registered in relation to irrelevant services, and Kova had expressly represented it had abandoned its common law rights, this meant that at latest on 11 May 2023 (and more likely earlier), there was no longer a first common law user.
Accordingly, the first entity to commence using the trade mark or in the alternative to file an application for a registered trade mark would become the true owner of the trade mark and be the only entity entitled to use it.
(c) The status of the Kova Registration was publicly available and the status of the common law rights of Kova, could be confirmed by any interested third party by way of due diligence into the validity and enforceability of Kova's intellectual property.
(d) As at 11 May 2023, McJenks could file a trade mark application for WONDER FOODS seeking registration in relation to goods and services of a similar kind to the Kova Products and Services, and that any such application would be made in good faith.
for various nutritional, dietary and mineral supplements; andIt is not the law that all rights with respect to a trade mark vanish at once upon a mere discontinuance of its use. The connection in the course of trade denoted by it will not immediately be forgotten.[32]
Going concern value, on the other hand, is the ability of a business to generate income without interruption even where there has been a change in ownership.[40]
Assets means the Vendor IP properly corresponding to the Business, but does not include the Excluded Assets.
Business means the health food business that was conducted by the Vendor known as Wonder Foods.
(b) the businesses conducted by the Vendor known as: (i) Natural Vitality Australia; (ii) Bio Research; (iii) Sun Ray; and (iv) NPM, and the associated intellectual property including related registered and unregistered trade marks, product and customer information;
(c) the Vendor's cash in hand, on deposit or at bank;
(d) the assets of the Business other than the Assets;
(e) any right of action against the directors or other officers of any company comprising the Vendor or any proceeds or recoveries arising from any such right of action;
(f) any Insurance Policy and the benefit of any claim arising under such an Insurance Policy;
(g) any assets used in the Business not owned by the Vendor and other equipment on the Premises not owned by the Vendor; and
(h) anything else specifically excluded by this agreement. Trade Marks means the registered and unregistered trade marks used by the Vendor in the Business. The parties acknowledge and agree that the only registered trade mark used in the Business is 1836264 (Wonder Foods). It includes drawings, logos, designs, design rights, copyright and similar industrial or intellectual property rights.
(c) the product information sold under the brand Wonder Foods including formulations of the products known to the Vendor; and
(d) the Vendor's customer and supplier information held and assignable by the Vendor, and all associated goodwill.
Websites means the Vendor's interest in the website (www.wonderfoods.com.au) and facebook and instagram pages used by the Vendor in connection with the Business www.facebook.com/wonderfoodsaustralia and www.instagram.com/wearewonderfoods)
The rights and liabilities of parties under a provision of a contract are determined objectively, by reference to its text, context (the entire text of the contract as well as any contract, document or statutory provision referred to in the text of the contract) and purpose.
In determining the meaning of the terms of a commercial contract, it is necessary to ask what a reasonable businessperson would have understood those terms to mean. That inquiry will require consideration of the language used by the parties in the contract, the circumstances addressed by the contract and the commercial purpose or objects to be secured by the contract.
Ordinarily, this process of construction is possible by reference to the contract alone. Indeed, if an expression in a contract is unambiguous or susceptible of only one meaning, evidence of surrounding[43] circumstances (events, circumstances and things external to the contract) cannot be adduced to contradict its plain meaning.[44]
Where a company carries on several discrete businesses (as in the present case, based on the approach taken by the primary judge), we do not see any reason why these principles should not apply to each separate business, such that an unregistered trade mark may be assigned together with the goodwill of the related business, rather than the business as a whole.[47]
(1) This section applies to a trade mark (section 44 trade mark) the application for registration of which has been accepted because of:
(b) a similar provision of the regulations made for the purposes of Part 17A.
(2) The registration of the section 44 trade mark may be opposed on the ground that the owner of the substantially identical or deceptively similar trade mark (similar trade mark) or the predecessor in title:
(a) first used the similar trade mark in respect of:
before the owner of the section 44 trade mark or the predecessor in title in relation to the section 44 trade mark first used the section 44 trade mark; and
(b) has continuously used the similar trade mark in respect of those goods or services since that first use.
The Registrar accepted the application for registration on the basis of evidence or representations that were false in material particulars. The Applicant has filed evidence of use in relation to Trade Mark No. 2393413 [and 2393414], which is not evidence of use of the trade mark by the Applicant.
(a) Bad faith for the purposes of s 62A must be [as at the priority date] and must relate to the making of the subject of the application:[53]
(b) Section 62A does not require the opponent to establish that the trade mark's use would result in deception or confusion. However, evidence to that effect may be persuasive in considering whether the application to register a mark was in bad faith:[54]
(c) The onus of proving bad faith rests upon the opponent:[55]
(d) All of the circumstances surrounding the application to register the mark are relevant:[56]
(e) The registration of a trade mark is designed to enable bona fide proprietors to protect their proprietary rights without having to prove unfair trading:[57]
(f) While the seriousness of an allegation of bad faith that "impugns the character of an individual or collective character of a business" requires correspondingly cogent evidence, the standard of proof is the balance of probabilities, rather than that of beyond reasonable doubt[58]
(g) Conduct which falls "short of the standards of acceptable commercial behaviour observed by reasonable and experienced men in the particular area" is sufficient. Dishonesty is not required. Bad faith requires both subjective and objective elements; it is a combined test[59]
(h) Subjective naivety does not exclude a determination of bad faith for the purposes of s 62A.
• On 11 May 2023, being 5 months prior to the filing of the Applicant's trade mark application, Trade Mark No. 2356038 was filed by the Opponent's licensor, and shortly thereafter, the use of it was licensed to the Opponent.
• In or about late May 2023 and on several occasions later (still prior to the priority date of the opposed trade mark), the Opponent, via its solicitor, notified the Applicant of the Opponent's use of Trade Mark No. 2356038 in relation to the subject goods, including Dietetic substances adapted for medical use; vitamins and vitamin supplements; dietary and nutritional products (meal replacements) and supplements; minerals and mineral supplements; nutritional supplements; herbal remedies; protein supplements.
• The Applicant, being wholly aware of the Opponent's Licensor's trade mark rights, and the considerable use of Trade Mark No. 2356038, the Applicant proceeded to file the current trade mark application on 3 October 2023 for a much wider set of goods, which wholly encompasses the goods of the Trade Mark No. 2356038.
• It is the Opponent's belief that the current trade mark application was filed in an attempt by the Applicant to attain registration without the Opponent being aware of same (i.e. to deceive the Opponent and usurp its trade mark rights).
• The Applicant has also filed evidence of use in relation to Trade Mark No. 2393414, which is not evidence of use of the trade mark by the Applicant. The reliance on false evidence, and the attempted misleading of the Australian Trade Marks office is conduct that is well below the standards of ordinary business practice, and also well below standards of acceptable commercial behaviour observed by reasonable and experienced persons in the supplements industry.
Discussion- WHAV's opposition to the Removal Application
(4) An application under subsection (1) or (3) (non‑use application) may be made on either or both of the following grounds, and on no other grounds:
(a) that, on the day on which the application for the registration of the trade mark was filed, the applicant for registration had no intention in good faith:
(ii) to authorise the use of the trade mark in Australia; or
(iii) to assign the trade mark to a body corporate for use by the body corporate in Australia;
in relation to the goods and/or services to which the non‑use application relates and that the registered owner:
(v) has not used the trade mark in good faith in Australia;
in relation to those goods and/or services at any time before the period of one month ending on the day on which the non‑use application is filed;
(b) that the trade mark has remained registered for a continuous period of 3 years ending one month before the day on which the non‑use application is filed, and, at no time during that period, the person who was then the registered owner:
(ii) used the trade mark in good faith in Australia;
in relation to the goods and/or services to which the application relates.
My finding that the application for registration of APP STORE for the designated services in Class 35 must be rejected determines the fate of the application as a whole. This is because there are no separate applications for registration of the mark for the designated services Classes 38 and 42. There is but one application covering registration of the mark for all the services that have been specified. If the application fails in one respect, it fails as a whole. In these circumstances, is not necessary for me to proceed to determine the registrability of APP STORE for the designated services in Class 38 or Class 42.[70]
Class 5: Acai powder dietary supplements; Albumin dietary supplements; Alginate dietary supplements; Antibiotic food supplements for animals; Antioxidant supplements; Antioxidants (dietary supplements); Bee glue (propolis) dietary supplements; Brewer's yeast dietary supplements; Carbohydrate based dietary supplements; Casein dietary supplements; Collagen based medicated supplements; Colostrum supplements; Dietary food supplements; Dietary nutritional supplements; Dietary protein supplements; Dietary supplements; Dietary supplements for animals; Dietary supplements for human beings; Dietary supplements for infants; Dietary supplements with a cosmetic effect; Dietetic food supplements adapted for medical purposes; Edible fish oil (cod liver oil) being dietary supplements; Enzyme dietary supplements; Fibre supplements; Flavonoid substances for use as a dietary supplement; Food supplements (dietary supplements); Food supplements for animals (minerals); Food supplements for animals (trace elements); Food supplements for animals (vitamins); Food supplements for medical purposes; Ginseng (dietary supplements); Ginseng capsules (dietary supplements); Ginseng extract (dietary supplements); Glucose dietary supplements; Herbal dietary supplements; Lactose (nutritional supplement); Lecithin dietary supplements; Linseed dietary supplements; Linseed oil dietary supplements; Maltodextrins (nutritional supplements); Medicated food supplements; Medicated preparations for use as supplements for food; Medicated supplements for animal feedstuffs; Medicated supplements for food; Medicated supplements for foodstuffs for animals; Medicated supplements for foodstuffs for human consumption; Medicinal food supplements; Medicinal food supplements for animals; Milk calcium concentrate (nutritional supplement); Milk sugar (nutritional supplement); Mineral dietary supplements; Mineral dietary supplements for animals; Mineral dietary supplements for humans; Mineral preparations for use as supplements to drinking water; Non-carbohydrate dietary supplements; Nutritional animal feed supplements; Nutritional drinks being dietary food supplements; Nutritional feed supplements for animals; Nutritional supplement energy bars; Nutritional supplement protein bars; Nutritional supplements; Nutritional supplements for animal feed; Nutritional supplements for animals; Nutritional supplements for medical use; Plant compounds for use as dietary supplements (medicinal); Plant compounds for use as dietary supplements (veterinary); Plant extracts (dietary supplements); Pollen (dietary supplement); Pollen dietary supplements; Powdered whey protein being dietary supplements; Powdered whey protein being nutritional supplements; Probiotic bacterial dietary supplements; Propolis dietary supplements; Protein dietary supplements; Protein supplements for animals; Protein supplements for humans; Royal jelly (nutritional supplement); Royal jelly dietary supplements; Supplements (trace element) for foodstuffs for animals; Supplements (trace element) for foodstuffs for human consumption; Vitamin preparations in the nature of food supplements; Vitamin supplement patches; Vitamin supplements; Vitamin supplements for animals; Vitamin supplements for foodstuffs for animals; Vitamin supplements for foodstuffs for human consumption; Vitamin supplements for use by lactating women; Vitamin supplements for use by pregnant women; Wheat germ dietary supplements; Whey protein being dietary supplements; Whey protein being nutritional supplements; Whey protein concentrates being dietary supplements; Whey protein concentrates being nutritional supplements; Whey protein dietary supplements; Whey protein isolates being dietary supplements; Whey protein isolates being nutritional supplements; Yeast dietary supplements; Vitamin C preparations
Class 5: Acai powder dietary supplements; Albumin dietary supplements; Alginate dietary supplements; Antibiotic food supplements for animals; Antioxidant supplements; Antioxidants (dietary supplements); Bee glue (propolis) dietary supplements; Brewer's yeast dietary supplements; Carbohydrate based dietary supplements; Casein dietary supplements; Collagen based medicated supplements; Colostrum supplements; Dietary food supplements; Dietary nutritional supplements; Dietary protein supplements; Dietary supplements; Dietary supplements for animals; Dietary supplements for human beings; Dietary supplements for infants; Dietary supplements with a cosmetic effect; Dietetic food supplements adapted for medical purposes; Edible fish oil (cod liver oil) being dietary supplements; Enzyme dietary supplements; Fibre supplements; Flavonoid substances for use as a dietary supplement; Food supplements (dietary supplements); Food supplements for animals (minerals); Food supplements for animals (trace elements); Food supplements for animals (vitamins); Food supplements for medical purposes; Ginseng (dietary supplements); Ginseng capsules (dietary supplements); Ginseng extract (dietary supplements); Glucose dietary supplements; Herbal dietary supplements; Lactose (nutritional supplement); Lecithin dietary supplements; Linseed dietary supplements; Linseed oil dietary supplements; Maltodextrins (nutritional supplements); Medicated food supplements; Medicated preparations for use as supplements for food; Medicated supplements for animal feedstuffs; Medicated supplements for food; Medicated supplements for foodstuffs for animals; Medicated supplements for foodstuffs for human consumption; Medicinal food supplements; Medicinal food supplements for animals; Milk calcium concentrate (nutritional supplement); Milk sugar (nutritional supplement); Mineral dietary supplements; Mineral dietary supplements for animals; Mineral dietary supplements for humans; Mineral preparations for use as supplements to drinking water; Non-carbohydrate dietary supplements; Nutritional animal feed supplements; Nutritional drinks being dietary food supplements; Nutritional feed supplements for animals; Nutritional supplement energy bars; Nutritional supplement protein bars; Nutritional supplements; Nutritional supplements for animal feed; Nutritional supplements for animals; Nutritional supplements for medical use; Plant compounds for use as dietary supplements (medicinal); Plant compounds for use as dietary supplements (veterinary); Plant extracts (dietary supplements); Pollen (dietary supplement); Pollen dietary supplements; Powdered whey protein being dietary supplements; Powdered whey protein being nutritional supplements; Probiotic bacterial dietary supplements; Propolis dietary supplements; Protein dietary supplements; Protein supplements for animals; Protein supplements for humans; Royal jelly (nutritional supplement); Royal jelly dietary supplements; Supplements (trace element) for foodstuffs for animals; Supplements (trace element) for foodstuffs for human consumption; Vitamin preparations in the nature of food supplements; Vitamin supplement patches; Vitamin supplements; Vitamin supplements for animals; Vitamin supplements for foodstuffs for animals; Vitamin supplements for foodstuffs for human consumption; Vitamin supplements for use by lactating women; Vitamin supplements for use by pregnant women; Wheat germ dietary supplements; Whey protein being dietary supplements; Whey protein being nutritional supplements; Whey protein concentrates being dietary supplements; Whey protein concentrates being nutritional supplements; Whey protein dietary supplements; Whey protein isolates being dietary supplements; Whey protein isolates being nutritional supplements; Yeast dietary supplements
[1] Unless otherwise indicated, any references to sections or regulations in this decision are references to sections or regulations of the Trade Marks Act 1995 (Cth) ('Act') or the Trade Marks Regulations 1995 (Cth) ('Regulations'), respectively.
[2] Hereinafter a Statement of Grounds and Particulars is referred to as an 'SGP'.
WHAV Pty Ltd
Propel Health Pty [2025] ATMO 222