TV-am PLC v Amalgamated Television Services (ATN CHANNEL 7) [1988] FCA 402
Federal Court of Australia
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JUDTMENT No. 400 / 8B.
CATCHWORDS
TRADE PRACTICES ACT - Misleading, deceptive and false statements -
passing off - Australian television program using similar name _ to that
of an English company - whether the applicant has sufficient reputation
in Australia - admissibility and weight of survey and statistical
evidence - relevant class for the purposes of section 52 - whether the
conduct of the respondent as a whole must be looked at to determine if
there is a misrepresentation - whether name is descriptive or
distinctive.
Trade Practices Act 1974 - ss 52 and 53
Tv-am ple Applicant
-v-
AMALGAMATED TELEVISION SERVICES PTY LID
(ATN CHANNEL 7) Respondent
G 849 of 1988
CORAM: Einfeld J. a o
DATE: 29 July 1988 Iu aca ; oo
PLACE: Sydney 2a TS FN
IN THE FEDERAL COURT OF AUSTRALIA
)
)
NEW SOUTH WALES REGISTRY ) No. G 849 of 1988
)
)
GENERAL DIVISION
Between: TV-am plc
Applicant
And: AMALGAMATED TELEVISION
SERVICES PTY LTD
(ATN CHANNEL 7)
Respondent
CORAM: Einfeld J.
DATE: 29 July 1988
PLACE: Sydney
MINUTE OF ORDERS
1. The application is dismissed.
2. The applicant is ordered to pay the respondent's costs.
NOTE: Settlement and entry of orders are dealt with 1n accordance with
Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES REGISTRY No. G 849 of 1988
ddd
GENERAL DIVISION
Between: TV-am plc
Applicant
And: AMALGAMATED TELEVISION
SERVICES PTY LTD
(ATN CHANNEL 7)
Respondent
CORAM: Einfeld J.
DATE: 29 July 1988
PLACE: Sydney
REASONS FOR JUDGMENT
The applicant was first incorporated in 1980 in England under the name
"TV-AM Ltd". In June 1986 it became a public company registered under
the name of "TV-am plc". The applicant has a licence from the
Independent Broadcasting Authority to broadcast throughout the United
Kingdom between 6 am and 9.25 am daily and has done so since 1983. The
Respondent is Amalgamated Television Services Pty. Ltd.(ATN Channel 7),
an Australian company. On May 2 1988 the respondent commenced
broadcasting a program entitled "TVAM". This program is screened s1x
days per week betweeen the hours of 6 am and 7.30 am. The applicant has
brought proceedings under the Trade Practices Act (the Act) alleging
that the respondent was guilty of misleading or deceptive conduct and of
making false representations contrary to sections 52 and 53(c) and (d).
The applicant also claims that the respondent is passing off its program
as one associated or connected with the applicant. The respondent
denies these allegations and further submits that in any event the
applicant must be denied relief by reason of its delay in bringing
proceedings.
THE FACTS
The applicant's program, which is broadcast on weekdays, 1s divided into
three distinct segments. Between 7 am and 9 am the program is_ entitled
"Good Morning Britain". Between 9 am and 9.25 am the program is entitled
"After Nine". There is some dispute as to the name prior to 31 May 1988
of the segment broadcast between 6 am and 7 am. The evidence shows that
from the beginning of this year at least, both the captions "TV-am" and
"Good Morning Britain" have been used. Nowhere in the program is it made
clear that "TV-am" is the title of the segment as opposed to the call
sigh of the station. It is clearly called "Good Morning Britaizn", a
title which would have no other purpose or meaning than as the name by
which it is intended to be known and called. On 31 May 1988 the title of
the first segment of the program was officially changed to "The Morning
Show".
It is necessary to outline briefly the content of the English_ show.
Videotapes in evidence demonstrate that the show has a number of
features such as news, weather, guest interviews, sports reports,
financial features, exercise regimes, and newspaper reviews. The
financial content of the program is slight, usually amounting to no more
than five minutes each hour, although the evidence demonstrates' that
the company is considering increasing this by two to three minutes in
the near future. The program appears to be aimed at a broad range of
socio-economic groups, but its presentation can generally be described
as "casual". The presenters appear without coats with the exception of
the news and financial segments, and a large portion of the show takes
place ina "lounge room" setting.
The actual logo of the applicant's station is "TV-am", "IV" appearing in
upper case and "am" in lower case. There is a hyphen between the two
abbreviations. In some printed manifestations of the logos, the lower
case letters "am" are sometimes the same size as "TV" but are sometimes
a smaller size. In the program telecast by the applicant, the "am" is
the same size as "TV". An application has been made for the registration
of the mark "TV-am" in Australia.
There is also some evidence of the words "AM" in upper case being used
in conjunction with "ITV" in reference to the applicant. This is seen for
example on the applicant's facsimiles and on some of its stationery.
Third parties when writing of the applicant refer to it variously as
"TV-am" or "TV—-AM".
The applicant's program "Good Morning Britain" together with other
material is received daily by the respondent's rival Channel 9 network
by satellite feed. This arrangement appears to be a direct result of the
Bond Corporation's interest in both companies. Bond Media Limited is
the licensee of the Channel 9 network including TCN Channel 9 Sydney,
and the Bond Corporation is currently the largest shareholder in the
applicant company with a 24.9% holding. The great majority of this
satellite material 1s supplied gratuitously to Channel 9. Evidence has
been given of two invoices only. These were:
(i) A sale for 200 pounds sterling in January 1987 of 3 x 3 minute
packages for use on the Today Show on the Nine Network;
(ii) A sale for 51 pounds" sterling in April 1985 of a 20 minute
cassette.
The only evidence of on-screen credits being given to TV-am by Channel 39
in sold or gratuitous material is in the items referred to in (1) above
and in the case of a video clip of one minute's duration supplied to
Channel 9 in October 1987. There may have been a few others.
Sales were also made to the respondent's Channel 7 network of a one
minute video clip in October 1987 and to Australia's Channel 10 group of
the "Good Morning Britain" sequence in January 1987. Only the
appearance on Channel 7 required an on-screen credit. In 1985, the
rights to the applicant's production 'Roland Rat - Superstar' were sold
to the Australian Broadcasting Commission, but no on-screen credits were
required.
The only other business activity carried out by the applicant in
Australia is the promotional purchase of a boat bearing the TV-am logo
for the Bondi Surf Lifesaving Club publicised in Britain on and near the
bicentennial Australia Day 1988. Some evidence was given of the
intention to distribute a book on the wedding of Prince Andrew to Miss
Sarah Ferguson endorsed by TV-am and of the intention to distribute an
exercise video produced by the company in Australia. No actual
distribution or sales were proved of the latter, and only a small
number of the former. Some reliance is also placed on the fact that the
applicant's station 1s managed by Mr. Bruce Gyngell, an Australian well
known in the television industry in this country. Some publicity given
in Australia to some activities of Mr. Gyngell in some industrial
problems experienced by the applicant was placed in evidence.
The respondent's program "TVAM" displays its letters all in upper case
and there is no hyphen. The respondent's intention to broadcast' this
program was advertised from at least 27 February 1988.
The name TVAM was suggested amongst others by the executive producer of
the program, John Barton. The evidence establishes that at the time of
suggesting the name, he was aware that there was a United Kingdom
company called TV-am which was a licensee on the independent television
network. A series of possible names were suggested by Mr Barton but the
final decision as to the use of the name was made by the respondent's
management.
The emphasis of the respondent's program is on rather specialised news,
finance and current affairs. In the language of today, it is intended to
be "upmarket". Its presentation is "dressy" in style; coats are worn and
the presenters sit behind desks.
The content of the program comprises approximately:
(i) News Headlines 1.5%
(ii) News Bulletins 21.5%
(iii) Weather 4.5%
(iv) Economic/Business/Political segments 712.5%
The program is not aimed at the general or mass market. According to Mr
Barton, who hosts the program with a female co-presenter, it is seeking
to be a television version of a quality financial and business
newspaper such as_ the Australian Financial Review or a quality radio
News and current affairs program such as the ABC's AM. It was first
screened on Monday 2 May 1988 and has appeared every weekday since. The
evidence reveals that there is frequent channel identification, but 1t
also features words such as "... joining us now by satellite, MTVAM's
London correspondent" and "... and that was Angela McKay, London
correspondent for TVAM", and the like.
THE ISSUES
In order to establish any of the claims made, especially passing off, it
is first necessary for the applicant to establish whether and to what
extent it has a reputation in Australia and when the reputation
commenced.
In Cadbury Schweppes Pty Ltd & Others v Pub Squash Co Pty Ltd [1980] 2
NSWLR 851 at 861 Lord Scarman stated:
"The judge, it is conceded, misdirected himself in holding
that the relevant date for detemmning whether a plaintiff
has established the necessary goodwill or reputation of his
product is the date of the commencement of the proceedings
... The relevant date 1s, in law, the date of the
commencement of the conduct complained of, 1 e . when the
respondent began to market 'Pub Squash'."
Applying this view here, the relevant reputation of the applicant will
be at the time when the respondent's program was first broadcast, 1.e. 2
May 1988.
As to how much reputation is needed, the applicant submitted that very
slight activities will suffice. It further submits that the concept of a
'slopover' reputation from England is relevant.
In BM Auto Sales Pty Ltd & Anor v Budget Rent-A-Car System Pty Ltd
{19771 51 ALJR 254, Gibbs J stated at 258:
"However, very slight activities in England have been held
to suffice; for example, 1t was enough that the plaintiff
took bookings in England (Sheraton Corporation of America v
Sheraton Motels Ltd [£1964] RPC 202) or carried out orders in
England (Poiret v Jules Poiret Ltd [1920] 37 RPC 177). The
judgments of Knox CJ and Dixon J in Turner v General Motors
(Australia) Pty Ltd [1929] 42 CLR 352 are consistent with
these authorities. It was there held that an American
company which had commenced to erect a factory in Australia,
and had widely advertised in Australia, before the defendant
committed the acts complained of, had done sufficient to
enable 1t to maintain an action for passing off."
The applicant also submitted that the reputation of the applicant in
England is relevant to determine whether there is sufficient reputation
in Australia for the purposes of these proceedings.
In Chase Manhattan Overseas Corporation & Others v Chase Corporation Ltd
& Another [1985] 9 FCR 129 at 140-141, Wilcox J stated:
"In my opinion it 1s wrong to postulate a rule that an
overseas company commencing operations in Australia for the
first time is necessarily in the same position as a newly
incorporated company . . Many markets are international in
nature. Communications are speedy and comprehensive. Just as
an overseas company may have a ""slopover" reputation
sufficient to sustain a passing off action in a country
where 1t does not trade: see Fletcher Challenge Ltd v
Fletcher Challenge Pty. Ltd [1981] 1 NSWIR 196 at 205 —-
there May be cases in which a reputation precedes the
newcomer so that, upon the commencement of its operations,
1t as xrecognised for what it is. This is likely
particularly to be the case where the newcomer 1° a
significant and well-known company in a country with ci*se
links with Australia, such as New Zealand."
in Taco Company of Australia Inc. & Another v Taco Bell Pty. Ltd. &
Others [1982] 42 ALR 177 at 188, Franki J does not seem to consider
knowledge of business being conducted in the foreign country as relevant
to the goodwill. He stated:
"The evidence certainly shows that a number of people in the
relevant area knew of restaurants operated 1n America by the
second appellant or operated under franchises granted by the
second appellant. There 1s, however, absolutely no evidence
that either appellant had, to use the words of Lord Fraser,
sold in the Sydney metropolitan area 'a class of goods to
which the particular trade name applies,' or to use the
words of Lord Diplock, there was no evidence that the
respondents or any of them made a musrepresentation
'calculated to injure the business or goodwill' of either
appellant. The plain fact 1s that neither appellant had any
relevant goodwill or business in the Sydney Metropolitan
area at the relevant time."
The applicant has asserted that the international nature of the
television industry makes this slopover reputation relevant. The
applicant has, however, given only very slight evidence of any relevant
internationalism here involved or any visibility of its name or products
in Australia. In the main it relies for its "slopover™ reputation on
surveys and statistics.
This survey material is in the form of affidavits from fourteen
individuals. A total of three surveys were carried out on April 7, 8 and
15 1988. 167 people were questioned. The questions varied but all asked
as an initial question 'Have you heard of TV-AM?' followed, 1f an
affirmative answer was given, by 'What is it ?'. The surveys were
conducted in the city of Sydney and at North Sydney. The result of the
surveys was that:
1. 12.58% of people interviewed were aware of TV~am plc;
2. 0.59% of people interviewed were aware of TVAM on the
respondent's Channel 7.
The respondent's program had not yet commenced. Similar affidavit
evidence was compiled by the respondent covering two public surveys,
also in the central business district area, on 22 April and 12 May 1988.
A total of 57 people were interviewed at random with the result that:
(1) 70.17% had never heard of TV-am;
(ii) 19.29% had heard of TIVAM on Channel 7;
(iii) 3.5% had heard of TV-am plc apart from recent publicity.
The respondent has objected to the admissibility of all this survey
evidence on the grounds of the questions put and the narrowness of the
sample. The admissibility and weight of such evidence was considered in
detail by Burchett J in the case of Shoshana Pty Limited & Anor v 10th
Cantanae Pty Limited & Ors [Federal Court of Australia, unreported 16
June 19871. This case went on appeal to a Full Court but this point was
not considered. His Honour stated at 27:
"In Lego System Aktieselskab v Lego M Lemelstrich Ltd [1983]
FSR 155 at 173 et seq Falconer J considered a submission
that answers 1n questionnaires utilized in a market research
survey were hearsay. After a detarled analysis of the GE
Trademark Case (19691 RPC 418 (at first instance); [1970T
RPC 339 (Court of Appeal); and [1973] RPC 297 (House of
Lords), he said at 176:
'The G.E Case 18 in my judgment sufficient
authority that such expert evidence based on the
results of a survey carried out on a representative
sample of the relevant public on accepted market
research principles is admissible, although, no
doubt, the value of the evidence will be subject to
any criticism which may properly be made as to such
matters as the representative value of the sample,
the form of questions and the manner in which the
survey has actually been carried out.'"
In Chase [above] at 142, Wilcox J stated of the survey there evidence in
question:
"In my opinion this evidence is of no weight The evidence
placed before the court failed to disclose the total number
of people interviewed in the survey or the answers given by
the other interviewees"
Although the situation here is a little different to that facing Wilcox
J, on the basis of the observations of both of their Honours, I think
that here the evidence is admissible as to reputation but its worth must
be greatly reduced by the small samples, the conflicting results and the
novelty of the respondent's program.
The applicant has also put into evidence statistical information aimed
at showing the movement of people between England and Australia. This
statistical information details:
(i) the number of Australians entering the United Kingdom in the
years 1982, 1983, 1985 and 1986;
(11) the number of residents from the United Kingdom and Ireland who
migrated to Australia over the past three years; and
(iii) the number of residents from the United Kingdom and Ireland who
visited Australia over the past three years.
These categories of people, according to the applicant, may have heard
of the applicant. The applicant submits that this is evidence as _ to
reputation which should lead the court to draw the inference that there
1s a significant number of persons in the Australian public who are
aware that the applicant conducts a morning television show in Britain.
Again, the respondent objected to the admissibility of this evidence on
the basis that it requires the court to draw inference on inference. The
applicant submits that for such evidence to establish reputation, the
court would have to draw the inference that a significant proportion of
migrants and/or travellers
(i) saw the applicant's program in the United Kingdom;
(11) understood the applicant's program as being televised under the
mark TV-am; and
(iii) brought that knowledge to Australia.
Some authority was cited by the applicant as to statistical information
of this kind. In Chase [abovel, Wilcox J said at 141:
"During each of the last few years over 200,000 people from
each of Australia and New Zealand have visited the other
country. In each of 1982 and 1983 over 28,000 Australians
visited New Zealand on business It 1s reasonable to
suppose, therefore, that many people resident 1n Australia —
and especially those in business - had heard of Chase
Corporation before 1t commenced any operations in this
country Many of the persons who have given evidence in
this case are in that category. This reputation cannot be
ignored in considering whether the use by the first
respondent in Australia of 1ts New Zealand name 1s likely to
mislead or deceive persons 1n Australia; to the extent that
people have already become aware of the identity of the
company they will not be msiled or deceived "
The only other evidence as to Australian reputation brought by the
applicant is the business or public activities previously outlined.
These are the donation of the surf boat, the sale and distribution of
copies of the Royal Wedding book, an intention to market the Izzie
exercise video, and the involvement of Mr. Gyngell. In my opinion,
these are of minimal if any significance to this case.
Given that the applicant has established some small reputation within
the borders of Australia, the next question which arises 1n relation to
section 52 of the Act is whether a significant number of the relevant
class of person has been deceived or misied as required by the section.
THE RELEVANT CLASS
Section 52 requires that a particular class of persons be deceived or
misled. This 1s made clear in Parkdale Custom Built Furniture
Proprietary Limited v Puxu Proprietary Limited [198212 149 CLR 191 by
Gibbs CJ at 199:
"Section 52 does not expressly state what persons or class
of persons should be considered as the possible victims for
the purpose of deciding whether conduct 1s misleading or
deceptive or likely to mislead or deceive It seems clear
enough that consideration must be given to the class of
consumers likely to be affected by the conduct Although it
1s true, as has often been said, that ordinarily a class of
consumers may include the inexperienced as well as_ the
experienced, and the gullible as well as the astute, the
section must in my opinion be regarded as contemplating the
effect of the conduct on reasonable member of the class
What 1s reasonable will of course depend on all the
circumstances "
The applicant attempted to distinguish this case on the grounds that
television viewers do not have to pay money to watch the medium in
Australia and are therefore not going to be the particularly
Fw Bd
discriminating type of person to whom Gibbs CJ is referring in _ that
passage. The applicant submitted that the relevant class comprises
those people who know of the reputation of the applicant. It argued that
the relevant class must be wider than television viewers because
members of the public who read newspapers but never watch the
respondent's program could nevertheless be confused by the respondent's
use of the applicant's name.
The respondent submitted that the relevant class is the target audience
or in other words those persons who have an interest in the content of
the respondent's television program. This class, the respondent
submitted, is limited to the upper socio-economic strata of society or
persons who would have an interest 1n business, finance and political
news.
Section 52 requires that a significant number of persons in the relevant
class be deceived or misled. What is a significant number of people is
a question of fact, and the only evidence as to people who may be
misled or deceived is the survey material. The applicant submitted that
the surveys allow the inference to be drawn that approximately 10% of
reasonable people would be likely to be misled or deceived. However, it
is clear that only two persons out of the 167 interviewed in the
applicant's survey, confused in any way the respondent's program with
the applicant. Thus only an insignificant section of the public is
involved.
The cases make 1t clear that a misrepresentation 1s necessary. In Taco
Labove], Deane and Fitzgerald JJ said at 202:
Paid
-14-
"Irrespective of whether conduct produces or is likely to
produce confusion or misconception, 1t cannot, for the
purposes of section 52, he categorized as misleading or
deceptive unless it contains or conveys, in all the
circumstances of the case, a misrepresentation "
It 1s submitted by the applicant that the likelihood of deception or
misleading conduct complained of consists in the respondent:
(1) passing off its program as _ connected with the business of the
applicant;
(ii) representing in trade or commerce that the respondent's program
is connected with the business of the applicant;
(iii) representing in trade or commerce that the respondent's program
or the respondent itself has the sponsorship or approval of or
an affiliation with the applicant.
The applicant further argued that in determining whether there has been
any misleading or deception by the respondent, 1t 1s irrelevant to look
past the use by the respondent of the applicant's name. It was submitted
that the knowledge of members of the public in Australia of the
existence of the name of the applicant company and the fact that it now
runs a morning television show no matter what its name, is sufficient.
However, 1t seems to me that in order to determine whether there has
been a relevant misrepresentation, it 1s necessary to look to the
conduct of the respondent as a whole. Such factors would include:
ay
(1) station identification by the respondent during the course of
ats program, and the use of the network's distinctive news logo
and background;
(11) advertisements placed by the respondent in various newspapers
indicating that its program is associated with the respondent's
television station or network;
(iii) actual differences in the mark;
(iv) the style and content of the respondent's program compared with
the program broadcast by the applicant;
(v) the publicity generated by the respondent in relation to its
progran.
The authorities support this general proposition. In Sitmar Cruises Ltd
v_Carnival Cruise Lines Inc & Ors [19861] ATPR 40-728 at 47-949, Beaumont
J said, with characteristic clarity:
"In order to establish a contravention of this provision, 1t
must be shown that the conduct in question contains or
conveys, in all the circumstances of the case, a
misrepresentation: see Taco Company of Australia Inc. & Anor
v Taco Bell Pty Ltd & Ors [1982] 42 ALR 177 per Deane and
Fitzgerald JJ at 202). It is not enough that the conduct
damages a rival trader: it must mislead or decelve or he
likely to mslead or deceive "members" of the public in
their capacity as consumers" (Parkdale Custom Bu1lt
Furniture Pty Ltd [1982] 149 CIR 191 per Mason J at 203) In
considering these questions, the respondent's conduct must
be viewed as a whole (see Puxu, supra, per Gibbs CJ at
199) "
Similarly 1n the English passing off cases of D.C. Thompson & Co Ltd v
Kent Messenger Ltd and Another [1975] RPC 191 and Morning Star
atl
Co-operative Society Ltd v Express Newspapers Ltd [1979] Fleet Street
Reports 113, the newspapers in question were compared in their entirety
to determine whether there had been a relevant misrepresentation.
Further, 1t was said in Parkdale [above] at 199 by Gibbs CJ:
"The conduct of the defendant must be viewed as a whole. It
would be wrong to select some words or act, which, alone,
would be likely to msilead 1f those words or acts when
viewed in thelr context, were not capable of misleading It
1s obvious that where the conduct complained of consists of
words it would not be right to select some words only and to
1gnore others which provided the context which gave meaning
to the particular words."
If the conduct of the respondent alleged to give rise to the
misleading/deception is viewed as a whole, the following additional
differences can be ascertained:
(i) The actual logos of the applicant company and of the
respondent's program differ.
(ii) Although the types of program broadcast by the applicant and the
respondent are both early morning breakfast shows, their content
and target audiences vary considerably.
(111i) The sets and mode of delivery of the on air presenters are
significantly different.
(iv) The applicant claims the reputation for its corporate name. The
respondent's use of the name is for a television program.
a
(v) The applicant is an English company incorporated in England with
minimal business activity in Australia. The program of the
respondent is broadcast purely in Australia. This consideration
was regarded as relevant by Beaumont J in Sitmar Cruises [above]
at 47,950:
"Further, 1f any likelihood of deception might otherwise
have arisen from the parties' use of similar slogans, it
would be eliminated by the considerable distance separating
the locations from which Sitmar and Carnival carry on their
respective operations. Although Carmival has expressed
anterest in moving into the Southern Pacific region, no
final decision to do so has yet been made "
In relation to the actual logo, the applicant submitted that it may rely
on both the registered name of the company and on the form of the name
as it 1s printed on some stationery and as it is at times used by third
parties. The respondent contends that the applicant may rely only on the
mark TV-am. In relation to section 52 the respondent relies on Parkdale
for the proposition that it is the conduct of the respondent which must
be misleading and that therefore the way 1n which the name is used by
third parties is of no relevance. The respondent further submits that
as 1t is the respondent's conduct to which regard must be had for the
purpose of determining if there has been a relevant misrepresentation,
no reliance can be placed by the applicant on the misinterpretation by
third parties of its name as "TV-AM" rather than as "TV-am". In my
view, the respondent's approach is correct.
It is clear that if a name comprises descriptive terms, a lesser degree
of difference between the two products is required.
Pee
In Hornsby Building Information Centre Proprietary Ltd and Another v
Sydney Building Information Centre Limited [1977-1978] 140 CLR 216,
Stephen J said at 229:
"There 1s a price to be paid for the advantages flowing from
the possession of an eloquently descriptive trade name
Because 1t 1s descriptive, 1t 1s equally applicable to any
business of a like kind, 1ts very descriptiveness ensures
that 1t 1s not distinctive of any particular business and
hence its application to other like businesses will not
ordinarily mslead the public In cases of passing off,
where 1t 1s the wrongful appropriation of the reputation of
another or that of his goods that is in question, a
plaintiff which uses descriptive words in its trade name
will find that quite small differences in a competitor's
trade name will render the latter immune from action. If
this be so in the case of passing off actions, the case of
section 52(1), concerned only with the interests of third
parties, is a fortior1. To allow this section of the Trade
Practices Act to be used as an instrument for the creation
of any monopoly in descriptive names would be to mock the
manifest intent of the legislation "
Decriptive mames can however obtain a secondary meaning and become
distinctive. In South Australian Telecasters Limited v Southern
Television Corporation Limited [19701 SASR 207, Walters J stated at 220:
"I apprehend the difficulty of distinguishing between words
which are descriptive and those which are distinctive;
sometimes the words "shade gradually and almost
imperceptibly from one type into another " And in some
circumstances, a descriptive name can become so identified
with a particular business as to give the name a secondary
signification differing from its primary one, so that 1%
will be understood and known to the public in a secondary
sense and as denoting the business of a particular
enterprise."
In the present case the applicant submitted that the name TV-am is
distinctive of the applicant. It says that in ordinary parlance the
letters TV-am cannot be placed in a sentence unless they are being used
Put
as a name. The applicant submits that the fact that it is a clever
combination which successfully indicates to ordinary people the concepts
of "morning" and "television" ought not to be confused with the
situation which might have arisen had the applicant chosen to call
itself "Morning Television Pty Ltd."
The respondent says that TV-am is descriptive for the reasons that:
(1) it accurately describes the activities of the applicant, namely
morning television;
(ii) both the Macquarie dictionary and the Oxford Dictionary contain
one entry each for "TV" and "am".
Given the small extent of the reputation which the applicant has been
able to prove in Australia, and given the substantial differences
between the applicant's company name and activities and the
respondent's program, there is in my opinion more than sufficient to
negate the existence of a misrepresentation irrespective of whether the
Name is categorized as descriptive or distinctive.
As no misrepresentation has been made by the respondent which 1s likely
to mislead or deceive the relevant class, the claim of the applicant
based on section 52 of the Trade Practices Act must fail.
The applicant's claim under section 53 fails for the same reason, 1.e.
there is no relevant misrepresentation by the respondent such as _ would
bring its acts within the words of the section.
The applicant finally relies on passing off. The passing off alleged by
the applicant is not, as it could not be, of the respondent's program as
the program of the applicant. Rather the alleged passing off 1s of the
respondent's program as being associated or connected with the applicant
company.
The essential elements of passing off were taken by Franki J in Taco
fabovel at 187 from the judgment of Lord Diplock in Warnink (Erven) v
Townend & Sons (Hull) Ltd [1979] AC 731 as follows:
"Lord Diplock (at 742) said that 1t was possible to identify
five characteristics which must be present in order to
create a valid cause of action for passing off They are:
'(1) a msrepresentation (2) made by a trader in the course
of trade (3) to prospective customers of his or ultimate
consumers of goods or services supplied by him (4) which is
calculated to injure the business or goodwill of another
trader (in the sense that this 1s a reasonably forseeable
consequence) and (5) which causes actual damage to a
business or goodwill of the trader by whom the action is
brought or (in a quia timet action) will probably do so.'"
At 183 Franki J referred to the comment of Lord Fraser of Tullybelton in
the same case on the justification for the action of passing off. Frank1
J stated:
"The true basis of a passing off action 1s clearly shown in
the following passage from lord Fraser of Tullybelton's
speech ... where his Lordship said: 'I note in passing that
the justification for the passing off action to prevent such
misrepresentation continuing 1s not to protect the public
but to protect the appellant's property in the
goodwi11./"
Even if the applicant has a sufficient reputation, it has not
established a misrepresentation for the purposes of passing off in
accordance with these criteria.
As the applicant has failed in all its claims, it is not necessary to
consider the respondent's submissions as to delay.
I dismiss the application. The applicant will pay the respondent's
costs.
SEGRETTNRDTINR ES ne re
| cortify that 'his ard the 20 Crwenty)
rreceding pages are a true copy ci the
Reasons for Judsment herein of his Honour
Mr Justice Einfeld c
Raconne Bor
Asscciaie
Dated: L4 ory \4%5