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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Bambino Mio Ltd v Cazitex N.V. [2008] EWHC 2796 (Ch) (13 November 2008) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2008/2796.html Cite as: [2008] EWHC 2796 (Ch) |
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CHANCERY DIVISION
Strand London WC2A 2LL |
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B e f o r e :
(Sitting as a Judge of the High Court)
____________________
BAMBINO MIO LIMITED | ||
Claimant | ||
and | ||
CAZITEX N.V. | ||
Defendant |
____________________
John Larking Verbatim Reporters
91 Temple Chambers 3- 7 Temple Avenue London EC4
Tel: 0207 404 7464 Fax: 0207 404 7443
MISS IONA BERKELEY (Instructed by Messrs Collyer Bristow, 4 Bedford Row, London WC1R 4DF) appeared on behalf of the Defendant.
____________________
Crown Copyright ©
Thursday 14th November 2008
THE JUDGE:
"In the event that your client succeeds on liability and
obtains an order for enquiries to damages and an account
of profits against our client, our client agrees that it will,
as part of that enquiry as to damages or an account of profits,
take responsibility for and pay any element of damages or
profits awarded that relates to the relevant activities of
CAS Textiles for the purposes of these proceedings.
This acknowledgement is not an admission of any kind
and as stated above, this proposal is made on purely
pragmatic grounds. Our clients reserve their position
and all their rights in relation to any costs issues that arise
from this issue in relation to these proceedings."
"Today we sell in around 65 countries around the world
through 40 exclusive distributors. Our top ten countries
for the last twelve months in terms of our sales to
distributors in these particular countries are (1) the
United Kingdom at £1.2m; (2) France £166,000;
(3) Japan £141,000; (4) Italy £125,000; (5) Australia
£85,000; (6) Czech Republic £52,000; (7) Belgium
£49,000; (8) The Netherlands £27,000; (9) Latvia
£26,000, and (10) Spain £24,000."
None of this evidence was challenged and I accept it.
"Our turnover for the last five years has been: 2007 £2.1m;
2006 £1.6m; 2005 £1.8m; 2004 £1.6m; 2003 1.2m ... by
volume in the UK sales to the trade represent the largest
part of our business by far ... we consider ourselves to be
the market leader of reusable nappies in the United Kingdom
and a major player in Europe. We estimate we have around
20 per cent of the reusable nappy market in the United
Kingdom."
None of this was challenged and I accept it to be so.
"My company's annual turnover for the year to 31st
December 2007 was €7.3m. Of this, our business
selling nappies accounted for approximately €215,000
worldwide. Our nappy business is new with first sales
being made in January 2007 and is not yet profitable.
On the expense side of the nappy business we have a full
time product manager together with advertising packaging
and stationery costs. We have spent over €200,000 to launch
the nappy business."
"From the beginning of 2007 all the advertising and
branding that we used ourselves and provided to our
distributor, CAS Textiles, to use in the UK comprised
of the brands 'Bambineo – natural bamboo softness'
although as mentioned above our website domain names
only use the Bambineo element as does some of the
editorial writing. The branding includes a cartoon
illustration of a baby in a standard bamboo."
"We believe that the sign Bambineo is confusingly
similar to our client's registered Trade Mark Bambino
Mio. The similarity between the Marks is further
increased by the way in which you present the name,
namely as Bambi Neo. In addition, you are using or
propose to use the name Bambineo in relation to
identical and similar goods of interest to our client.
Therefore, we can only conclude that if you continue
or begin to use the name Bambineo then there will be
confusion on the part of the public, including the
likelihood of association."
"To make good an allegation of infringement under
Article 5(1)(b) the proprietor must show that there is a
likelihood of confusion. The basic principles that must
apply in assessing the likelihood of confusion are now well
established and may be summarised as follows;
(1) The likelihood of confusion must be appreciated
globally taking account of all relevant factors;
(2) The matter must be judged through the eyes of the
average consumer of the goods in issue who is deemed
to be reasonably well informed and reasonably
observant and circumspect;
(3) In order to assess the degree of similarity between
the Marks concerned, the court must determine the degree
of visual, aural and conceptual similarity between them and,
where appropriate, evaluate the importance to be attached
to those different elements taking into account the nature
of the goods in question and the circumstances in which
they are marketed;
(4) The visual, aural and conceptual similarities of the Marks
must, therefore, be assessed by reference to the overall
impressions created by the Marks bearing in mind their
distinctive and dominant components. The perception of
the Mark in the mind of the average consumer plays a
decisive role in the overall appreciation of the likelihood
of confusion;
(5) The average consumer normally perceives a Mark as a
whole and does not proceed to analyse its various details;
(6) There is a greater likelihood of confusion where the
earlier Trade Mark is a highly distinctive character either
per se or because of the use that has been made of it;
(7) The average consumer rarely has the chance to make
direct comparisons between Marks and must instead rely
upon the imperfect picture of them he has kept in his mind.
Further, the average consumer's level of attention is likely
to vary according to the category of goods in question;
(8) Appreciation of the likelihood of confusion depends upon
the degree of similarity between the goods. A lesser degree
of similarity between the Marks may be offset by a greater
degree of similarity between the goods and vice versa;
(9) Mere association in the sense that the later Mark brings
the earlier Mark to mind is not sufficient for the purposes
of the assessment;
(10) The risk that the public might believe that the goods
come from the same or economically linked undertakings
does constitute a likelihood of confusion within the meaning
of the section."
"Forming an overall global assessment as to whether
there is likely to be a significant consumer confusion ...
is essentially a value judgment to be drawn from all
the circumstances. Further, conceptual over-elaboration
is apt to obscure this and is accordingly unhelpful. It
may be observed that both approaches guard against too
narrow a view of protection. To confuse only the careless
or stupid is not enough."
The average consumer test is one that is applied to consumers of the goods in issue, in this case reusable nappies. As Mr Geoffrey Hobbs QC, sitting as a judge of this court observed in Whirlpool Corporation v Kenwood [2004] EWHC 1930 Ch, at paragraph 69:
"It was suggested on behalf of Kenwood that the
relevant assessment should be made by reference to
the average among all consumers in the market for all
the different types of electric beating and mixing
machines that would be covered by the Community
Trade Mark Registration in Class 7. I do not agree.
The ECJ has confirmed that it is the circumstances
characterising the allegedly infringing use which
must be considered in order to determine the question
of liability for infringement. It is necessary to conduct
a risk assessment. The tribunal must assess the likelihood
of the conduct in question giving rise to consequences
of the kind prescribed. The average consumer test
standardises the approach to assessment. It does so by
requiring the tribunal to judge the matter from the
viewpoint of the consumer exercising neither too low
or too high a degree of perspicacity. It does not permit
or require the tribunal to exclude any relevant factors
from the assessment of risk. The Artisan and KMix
are both premium priced products, targeted at design
conscious consumers. It follows, in my view, that
the question of liability for an infringement can properly
be determined by taking the presumed expectations of
such consumers into account. To hold otherwise would
be to apply a test divorced from the actualities of the case."
22. Although some reliance was placed by Ms Berkeley on the decision of the European Court of Justice in Proctor & Gamble v The Office for the Harmonisation of the Internal Market [2002] RPC 17, I consider that case to be clearly distinguishable and, if anything, emphasises the point that I have been endeavouring to make in this section of this judgment. That case concerned an application for registration as a Mark of the phrase "Baby Dry" in relation to disposable nappies. The application failed initially because it was concluded that:
"The Mark was composed only of a simple combination
of the non-distinctive words 'baby' and 'dry' and thus
consisted exclusively of an indication which might
serve in trade to designate the intended purpose of the
goods for which registration was sought, i.e., keeping
a baby dry."
Ultimately, the case reached the European Court of Justice where the appellant succeeded for the reasons which are identified in paragraph 43 and following of the judgment which in essence was to this effect:
"While each of the two words in combination may form
part of an expression used in every day speech to designate
the function of babies' nappies, their syntactically unusual
juxtaposition is not a familiar expression in the English
language, either for designating babies' nappies or for
describing their essential characteristics. Word combinations
like 'Baby Dry' cannot therefore be regarded as exhibiting
as a whole a descriptive character. They are lexical
inventions bestowing distinctive power on the Mark so
formed and may not be refused registration under
Article 7(1)(c) of Regulation 40 of 94."
"From my personal experience with my own children
and from dealing with customers since that time, when
a parent decides to use reusable nappies rather than
disposable nappies, this is not a rushed decision but
followed from undertaking some research into the pros
and cons of both types of nappy. If the choice is reusable
nappies then some further careful thought is given to the
various options, including the different fabrics and systems
available. There are currently ten different brands that I
know of, including Bambino Mio and Bambinex. The
brand name tends to be less important than the look,
feel and performance of the product. In my view, this
makes it far less likely that someone would mistakenly
buy one brand of reusable nappy thinking it was a
different brand just because of a degree of similarity
between the brand names."
I accept this evidence. It tends to be supported by the very significant number of domain and chat room sites at which the advantages of various products are extolled and also by the substantial amount of editorial material in specialist publications on the issue as well as by the attendance of manufacturers and suppliers at mother and baby trade shows such as that held at the NEC referred to above.
"The nappies that my company produces are designed
to be washed and reused for as long as the baby needs
them. Although the initial cost is higher, in the long term
they work out cheaper than disposable nappies as well
as having significant ecological advantages. The liner
which we use inside our nappies is wholly biodegradable.
This means that it has a negligible effect on waste in
landfill. By contrast, a huge proportion of waste in land-
fill is taken up with disposable nappies which do not
biodegrade at all or only very slowly indeed. The quality
of our product is very high. We have deliberately chosen
expensive materials and expensive manufacturing processes
in order to maintain the highest quality. Bamboo fibre is
at least 60 per cent more expensive than cotton. The
manufacturing process for our nappies is expensive.
The seams are tripled stitched and special silicone
elastic is used in the stretch sections of the nappy.
The consequence is that this product with withstand
repeated washing at up to 90 degrees Centigrade.
It remains soft and continues to form an effective seal
against leaks. In my opinion, bamboo fibre nappies
offer much more comfort and have a better performance
than the cotton reusable nappies such as the ones sold
by the claimant."
As Mrs Bolton says at paragraph 12 of her statement:
"I was aware of Bambino Mio Ltd as a manufacturer
and supplier of reusable cotton nappies but I never
paid very much attention to them. This is because
their product is radically different from our shaped
bamboo fibre product and personally I did not like it.
I certainly never regarded them and still do not regard
them as a direct competitor for our bamboo fibre nappy
product. There are other products sold by other businesses
such as Top Box which do directly compete with the
Bambinex natural bamboo softness nappies."
I accept this evidence, which was not challenged.