Budway’s mark restricted from the way of Subway

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By Unnat Akhouri

Recently, the Federal court of Canada has order Budway (a cannabis dispensary) to pay damages for infringing the trademark of Subway. Along with the damages, Budway was also ordered to destroy any goods or advertising material with its logo. In this case, the logo used by Budway was confusingly similar to the registered mark of Subway, be it the arrows on letters of logo (B and Y) or the two-color scheme. The court concluded that there existed a high level of resemblance between the two marks. With the similarities in visual representation, it was 

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noticed that the two names: Subway and Budway, were similar in pronunciation. The fact that ‘Budway’ is not a meaningful word itself would compel the customers to read this to connote the recognized word ‘Subway’. Further, both the parties were offering edibles, including cookies, which would increase the likelihood of confusion. For goodwill damage, the court held that the similarities in both the marks would result in the assumption of linkage, and the nature of Budway’s offerings will depreciate the goodwill of Subway’s mark. Lastly, the contention of passing off was also discussed by the court. It stated that Subway has proven all the requisites of a passing off claim, namely: the existence of goodwill, misrepresentation creating confusion, actual/potential damage and ownership of a valid registered/unregistered trademark.

By Unnat Akhouri