May 31, 2016
Health Canada has announced its intent to consult on “plain packaging” for tobacco products. Full details have yet to be released, but it is likely that only the brand name could appear on packaging, and coloring and size of packages and tobacco products would be standardized.
The rationale for plain packaging is to reduce overall tobacco use and deter new smokers. However, all brand owners should be interested in regulation of branding. Plain packaging will restrict the use of many long-used registered design marks and familiar elements of trade dress, as well as prevent the adoption and use of new branding in the future.
Most packages display a combination of word marks, designs, colours and package size/shape which contribute to the overall brand identity and are used by consumers to make their purchases. While only tobacco products are currently targeted in Canada, in other jurisdictions, drugs, alcoholic beverages and children’s products are also the subject of plain packaging limitations.
Plain packaging for tobacco is not a new concept, and legislation has been adopted, or is planned in many countries. Australian legislation has been challenged as contravening the Agreement on Trade-related Aspects of Intellectual Property (“TRIPS”) before the World Trade Organization. TRIPS confirms that trademarks are private rights, prohibits unjustifiably encumbering the manner in which a trademark is used, and prevents the nature of the product being an obstacle to registration. A decision on the Australian dispute is expected shortly, but attempts to challenge plain packaging regulations in other jurisdictions, such as the European Union, have recently failed.
In addition to TRIPS compliance, plain packaging threatens to put Canada offside the Paris Convention for the Protection of Industrial Property, which contains reciprocal provisions requiring trademarks to be protected as in other member countries. Canada’s Trademarks Act now requires “use” for registration in Canada, and will continue to make use or intent to use a requirement of registration. If tobacco products marks cannot be used in Canada, they cannot be registered. If other countries continue to permit registration, that will raise additional treaty-compliance concerns.
Apart from concerns relating to international IP treaties, plain packaging raises other issues, including:
With a new government with a majority in the House of Commons, it is expected that additional packaging restrictions will be imposed. However, it is hoped that issues of importance to all brand owners will be addressed during these consultations.
Information on this website is for information only. It is not, and should not be taken as, legal advice. You should not rely on, or take or not take any action, based upon this information. Professional legal advice should be promptly obtained. Bereskin & Parr LLP professionals will be pleased to advise you.