Reference no: EM133641387

Problem

On April 27, 1992, Lexus Foods Inc. ("Lexus Foods") filed an application with the Registrar of Trade-marks in order to secure registration of the trade-mark LEXUS in association with "canned fruits, canned vegetables, fruit juices and vegetable juices" on the basis of proposed use of the trade-mark in Canada.

Toyota Motor Corporation ("Toyota") filed a statement of opposition against this application alleging confusion with three trade-mark registrations it owned for the trade-mark LEXUS covering, among other things, "motor cars and parts and accessories thereof, repair services".

The Trade-marks Opposition Board dismissed Toyota's opposition in July 1997. Toyota appealed that decision before the Trial Division of the Federal Court of Canada. There, Toyota's appeal was allowed; the Trial Division found the trade-mark "LEXUS" to be a famous trade-mark and considered that Toyota had made its case that there was indeed confusion between the trade-mark LEXUS for cars and the same trade-mark as applied to canned food products. The Court directed the Registrar to refuse Lexus Foods' application for the trade-mark LEXUS. Lexus Foods appealed the Trial Judge's decision before the Federal Court of Appeal.

Do you think that the appeal of Lexus Foods against the Trial Judge's decision has merit? If yes, why? Could the same trademark be used by two different businesses?