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In the evolving landscape of Canadian trademark maintenance, the Canadian Intellectual Property Office (CIPO) has introduced a significant measure to maintain the integrity of the Trademarks Register. Launched in January 2025, the "Deadwood" Initiative provides for the Registrar to initiate Section 45 Expungement Proceedings against inactive trademarks to ensure the register accurately reflects marks in active use.
This proactive approach addresses "deadwood" registrations, which are unused trademarks cluttering the system and potentially hindering innovation and fair competition.
For businesses and legal practitioners, understanding Section 45 Proceedings under this initiative is crucial, particularly as it imposes new compliance requirements for proof of use in Canada under the Trademarks Act.
Understanding the Trademark "Deadwood" Initiative and Section 45 Proceedings
The "Deadwood" Initiative stems from Section 45 of the Trademarks Act, which mandates that registered trademark owners furnish evidence of use in Canada within the three years preceding a notice, or face potential expungement for non-use. Traditionally, such non-use cancellation proceedings were initiated by third parties.
However, this empowers the Registrar to act independently, marking a shift toward greater administrative efficiency in Canadian trademark law.
The project's primary objective is to quantify and eliminate unused registrations, thereby enhancing trademark availability and reducing legal ambiguities in trademark non-use cases.
Eligible trademarks include those registered for more than three years across various bases: use in Canada, proposed use with a declaration of use filed, use and registration abroad, multiple bases, or other longstanding entries. By clearing inactive trademarks in Canada, CIPO aims to foster a more reliable register that supports economic growth and protects genuine brand owners.
As of the latest published data for January 2025, the initiative issued 87 notices in its initial batch, with 68% of registrations expunged due to failure to respond, 8 proceedings discontinued upon clear evidence of use, and 20 registrations maintained.
Subsequent batches of 50 notices each were planned for June and July 2025, with further issuances ongoing as of October 2025, though detailed outcomes for these remain pending publication. This underscores the importance of proactive trademark maintenance strategies for owners to avoid summary cancellation proceedings.
How the Section 45 Process Operates Under the Initiative for Proof of Use
Upon receipt of a notice—sent to the owner's address of record and any appointed agent—trademark owners have three months to submit an affidavit or statutory declaration evidencing use during the relevant three-year period.
Evidence must demonstrate controlled use by the owner, licensee, or assignee, correlated precisely to each registered good or service, as required for proof of use in Section 45 Proceedings. Extensions are limited: up to two months for evidence submission (one request only), with further grants reserved for exceptional cases.
Special procedures streamline resolutions in non-use cancellation proceedings. If evidence unequivocally supports continued use, owners may consent to discontinue the proceeding, avoiding further costs. Hearings, if requested, are scheduled via videoconference, with decisions rendered promptly post-review.
Implications for Trademark Owners and Legal Advisors in Non-Use Cases
This initiative carries profound implications for entities managing trademark portfolios, especially those with extensive holdings facing risks of trademark non-use cancellation.
For owners, the risk of inadvertent expungement looms large if use records are incomplete, potentially eroding brand protections and inviting opportunistic challenges under Section 45 of the Trademarks Act. Firms advising clients face heightened administrative demands, including accelerated evidence gathering and response strategies for proof of use affidavits, which could strain resources amid random selection.
Conversely, the benefits are clear: a purged register diminishes clutter, facilitating smoother searches and registrations for innovative marks in Canada. Early data reveals that while many proceedings lead to maintenance or amendment, a significant portion culminate in partial or full expungement, signaling a cleaner ecosystem for all stakeholders in inactive trademarks management.
For multinational corporations or firms with dormant assets, this underscores the value of regular audits to mitigate Section 45 risks under Canadian trademark maintenance protocols.
Strategies for Effective Trademark Maintenance and Avoiding Expungement in 2025
To navigate the "Deadwood" Initiative and Section 45 Expungement Proceedings successfully, trademark owners should adopt a structured compliance framework for proof of use and non-use defenses:
- Conduct Portfolio Audits: Systematically review registrations over three years old, verifying use evidence for each good and service to prevent non-use cancellation.
- Maintain Comprehensive Records: Document sales invoices, advertisements, and licensing agreements timestamped within the three-year window, essential for Section 45 affidavits.
- Engage Professional Counsel: Collaborate with IP specialists to prepare affidavits and explore discontinuance options in registrar-initiated proceedings.
- Monitor CIPO Updates: Stay informed via official practice notices, as Phase 2 may expand targeting to specific categories of inactive trademarks.
By implementing these measures, owners can transform potential challenges into opportunities for portfolio optimization and robust trademark protection in Canada.
Conclusion: Implications for Intellectual Property Management and Section 45 Compliance
The CIPO Trademark "Deadwood" Initiative represents a pivotal advancement in Canadian IP administration, compelling brand owners to affirm the vitality of their marks through timely proof of use. As the program progresses into late 2025, with ongoing monthly notices, timely action remains essential to avoid expungement and preserve competitive edges in trademark non-use scenarios.
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.
