Wicked v Wicked Sister - Full Court confirms no statutory infringement by a party that has not used but has authorised use of a trade mark

• Published date: 24 August 2021
• Law Firm: Shelston IP
• Author: Ms Kathy Mytton and Sean McManis

In the recent decision of PDP Capital Pty Ltd v Grasshopper Ventures Pty Ltd [2021] FCAFC 128 (29 July 2021), the Full Federal Court confirmed that a trade mark owner who merely authorises use of its trade mark cannot be subject to liability for direct trade mark infringement pursuant to s120(1) of the Trade Marks Act.

In the first instance decision, found here, PDP failed in its claims against Grasshopper for trade mark infringement, misleading and deceptive conduct under the Australian Consumer Law and for passing off. Both parties failed in their attempt to cancel the other parties' trade marks but succeeded in having them restricted.

Background

PDP has manufactured and sold a range of chilled dairy desserts and snacks in Australia under the Wicked Sister brand since 2008.

PDP owns registrations for WICKED SISTER in plain word and stylised forms which cover various goods in classes 29 and 30 (collectively "the Wicked Sister Marks"). The earlier stylised mark dates from 2008 and is owned by PDP Fine Foods Pty Ltd. The later stylised mark and plain word mark WICKED SISTER both date from 2016 and are owned by PDP Capital Pty Ltd, a related IP holding company. PDP Capital's marks achieved registration by consent from PDP Fine Foods.

Grasshopper is an IP holding company which has authorised the use by various entities selling dipping sauces since 2002 under the WICKED brand.

Grasshopper owns a registration dating from 2005 for the trade mark:

("Wicked Tail Mark") in class 30 for dipping sauces and related products. The WICKED Tail Mark was modified in 2014 to:

("New Wicked Mark") for which Grasshopper applied for registration in 2015 with the original branding phased out by early 2016. Grasshopper extended its product range to include waffle dippers in 2018.

Both the Wicked Sister and Wicked products are sold through Coles supermarkets.

PDP sells flavoured rice puddings, custard, tiramisu and panna cotta under the Wicked Sister Marks, made from fresh ingredients and found in the refrigerated section of the dairy aisle of supermarkets.

On the other hand, Grasshopper's "Wicked" dipping sauces and waffle dippers are shelf stable products which do not require refrigeration, although the dipping sauces are sometimes placed with frozen berries in the refrigerated section of the fresh food section of the supermarket.

Appeal

The Full Court considered grounds of appeal relating to infringement, the parties' respective removal claims and the ACL and passing off.

Inf...