Canada: Unparticularized Allegations Made Pursuant to S. 53 Struck Without Leave to Amend (Intellectual Property Weekly Abstracts - Week of January 30, 2017)

Patent Decisions

Unparticularized Allegations Made Pursuant to S. 53 Struck Without Leave to Amend

Apotex Inc. v. Shire LLC, 2016 FC 1267     

Drug: lisdexamfetamine dimesylate

In this case, Apotex started an action to impeach Shire's patent relating to lisdexamfetamine dimesylate. Shire brought a motion to strike portions of Apotex's Reply.

The Court held that Section 53 allegations are essentially allegations of fraud and of a state of mind, and pursuant to Rule 181, require full particulars. Here, the pleadings failed to identify exactly who made what statements to the Patent Office. Furthermore, they were bereft of particulars as to the factual basis upon which the Court might be able to conclude that this person or persons knew, at the time, that the statements were false, or that these persons intended to mislead the Patent Office with these statements. There were only vague allegations that Shire made assertions as to the utility of the invention and now denies that these assertions amount to utility. 

The Court held that implicit allegations of fraud such as these are not proper pleadings. Such pleadings may be saved if the material facts can be inferred from the pleadings or representations of a party on a motion to strike. However, that is not the case here.

Shire sought to strike a further paragraph. However, the Court held that it was a statement of legal conclusion, that does not open the door for Apotex to rely on or have discovery with respect to any fact that is already not specifically pleaded as a basis for arguing ambiguity. Parties are free to argue any legal consequence supported by the facts pleaded, thus, it is a waste of the Court's time to move to strike a legal conclusion. Thus, this portion of the motion was dismissed.

Despite the divided success, the Court awarded elevated costs to Shire because Apotex's allegations of s.53 fraud were made casually and thoughtlessly.

Court Dismisses Alexion's Appeals from Three Separate Orders

Alexion Pharmaceuticals Inc. v. Canada (Attorney General), 2017 FC 22 and
Alexion Pharmaceuticals Inc. v. Canada (Attorney General), 2017 FC 21 

Drug: eculizumab

The Court dismissed Alexion's appeals concerning three separate Orders. The first appeal concerned Prothonotary Aalto's Order allowing the Respondent's motion to strike Alexion's constitutional challenge to the price regulation scheme found in sections 83-86 of the Patent Act. The Court agreed with Prothonotary Aalto that the Court in Canada (Attorney General) v. Sandoz Canada Inc. (2015 FCA 249) is the binding authority. Therefore, Prothonotary Aalto's decision was correct, and accordingly, the appeal was dismissed.

The second and third appeals concerned two Orders from Prothonotary Aylen. The first Order struck, as premature, Alexion's Application for Judicial Review of a decision of the PMPRB allowing certain amendments to the Board's Notice of Allegation. In the second Order, the Prothonotary dismissed as moot Alexion's motion for an order on consent protecting certain information as confidential. The Court found no palpable or overriding error in either decision, and accordingly, the appeals were dismissed.

Costs Awarded at the Higher End of Column IV, with Elevated Costs for Various Factors          

Pollard Banknote Limited v. Babn Technologies Corp., 2016 FC 1193  

In this decision on costs, the Court award costs calculated at the top of column IV of Tariff B to the Plaintiff for its successful impeachment action.

The Court considered the factors listed under Rule 400(3). The Court had serious concerns on three issues, including the manner in which the Defendant dealt with one of its expert's testimony. According to the Court, it appeared likely that the Defendant and/or its counsel was aware before trial that it had no reliable expert evidence to defend against the Plaintiff's central issue in the case. Furthermore, the Court noted that the Defendant failed to address the situation in any way during trial, either in re-direct or in argument. The Court was also concerned about the Defendant's position on the Patent's construction, which was contrary to the position it took during prosecution of the patent application. While these grounds justified elevated costs, the Court was not convinced that the Defendant's conduct had been so reprehensible as to justify a lump sum award of costs.

Trademark Related Decision

Decision on Passing Off and the Use of Internet Keywords is Reversed on Appeal        

Vancouver Community College v. Vancouver Career College (Burnaby) Inc., 2017 BCCA 41  

The B.C. Court of Appeal has overturned a lower court decision that had dismissed a trademark passing off claim against the Defendant Vancouver Career College brought by the Plaintiff Vancouver Community College. (2015 BCSC 1470, previously summarized here)

The Plaintiff alleged passing off its VCC mark. 

The two schools offer programs that overlap to a degree. It was alleged that in 2009 the Defendant used keywords to direct traffic to its website VCCollege.[ca], including VCC, Vancouver Community College, and other educational institutions. 

The Court of Appeal found that the trial judge had erred in appreciating the evidence of goodwill, finding that the Plaintiff had goodwill in the VCC mark, which was recognized in the relevant market-place as a public provider of post-secondary education. It was further held that confusion is to be assessed while the user is still on the internet, so it does not matter whether the user's misconceptions would be set straight later. Damage was inferred from the unauthorized use of goodwill, and thus the passing off claim was found to succeed.

The Plaintiff also has two official marks, VCC and VANCOUVER COMMUNITY COLLEGE. The Court of Appeal held it could not perform an appellate review of the order dismissing the claim of breach of official marks. This was remitted to the trial court for determination.

The issue of damages for the passing off claim was also remitted.

Please add at the end of every article:

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.