Canada - IP Cases

 

 

Incorrect payment of patent fee:

Canadian courts have continued to take an unforgiving approach where patent fees are eroneously paid at the small entity rate.  Although the Commissioner allowed a top-up of the filing fee to the large entity rate, the court found that the prescribed fee was not paid within the applicable time limit, resulting in the irrevocable abandonment of the application. Although Bill C-29 provides a one-year window in which the incorrect payment of a fee may be corrected, regardless of when the incorrect fee was paid, the legislation, however, does not provide any continuing relief for incorrectly paid fees and to ameliorate the continued strict effect of Canadian patent fee payment requirements.

Pledge to Africa Act:

The Act implements the decision of the World Trade Organization (WTO) General Council on the TRIPs Agreement and Public Health which allows any member country to export to developing countries patented pharmaceutical products manufactured under compulsory licences.  Apart from the requirement, it will not be difficult for the licensed manufacturer to obtain a compulsory licence under the Act.  The Act does not grant patentees any opportunity to provide submissions to the Commissioner for the grant of a licence but does provide patentees with some protection from potential abuses.

Utility and the doctrine of sound prediction:

  The Supreme Court of Canada ruled that a patentee can establish the utility of subject matter not made or tested at the relevant date on the basis of a "sound prediction".  In order for a prediction to be sufficiently sound, the patentee must demonstrate that there is (1) a factual basis for the prediction, (2) an articulable line of reasoning from which the desired result can be inferred from the factual basis, and (3) proper disclosure.  The Federal Court, however issued two different decisions for a sound prediction somewhat differently.

Patent assignments and competition law: 

The Federal Court of Appeal addressed  the intersection between patent law and competition law in Canada, and ruled that an assignment of patents could constitute a conspiracy in contravention of the Competition Act if the assignment transfers more market power than is inherent in the patents assigned.  As a result of this decision, every assignment of patents must be reviewed for competition law issues particularly where the assignee owns other related patents.

Trade Mark Law:

In a decision, the Supreme Court of Canada ruled that trade mark law cannot be applied to prevent competitors from selling a product that look and function like another company's blocks. The Court suggested that there is a presumption that the features claimed in a patent are purely functional.  The Court reasoned that it would be inappropriate to extend trade mark protection to those features as it would result in "overextending monopoly rights on the products themselves and impeding competition, in respect of wares sharing the same technical characteristics".  In addition, where certain features previously benefited from patent protection, the Court presumes that the features are primarily or purely function, and therefore are not subject to trade mark protection.

Copyright Law:

In a copyright infringement action which was brought in the Federal Court by way of a motion seeking disclosure of the users' identities from their internet service providers, the motions judge dismissed the motion on the grounds that the plaintiffs had failed to submit adequate evidence to demonstrate the need for disclosure outweighed the privacy concerns involved. In his reasons, the motions judge noted that the plaintiffs had failed to make a prima facie case for infringement, saying that neither downloading nor placing a file in a shared directory where others could access amounts to copyright infringement in Canada, since downloading provides that sound recordings made on to an audio recording medium for private use do not constitute copyright infringement.

Amendments to the Canadian Copyright Act:

In June 22005, the Government of Canada introduced a Bill to amend the Copyright Act.  The amendments form part of the ongoing reforms of the Copyright Act and addressed issues arising from the internet.  Among the proposed amendments, provisions are made to implement the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty which deal with issues arising from the dissemination of copyright works over the internet.  The amendments also exempt ISPs from liability for infringement so long as they are only acting as intermediaries.

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Canada