Masterpiece Inc. and Alavida Lifestyles Inc. both operate in the retirement residence industry.
Masterpiece Inc. used several unregistered trade-marks containing the word 'Masterpiece' in Alberta prior to Alavida applying to register 'Masterpiece Living' as a proposed trade-mark in Ontario.
Masterpiece Inc. applied to expunge Alavida's registration on the basis of confusion.
The Supreme Court of Canada allowed the appeal and ordered the expungement of Alavida's trade-mark, holding that the location of use is irrelevant to the confusion analysis, that a proposed mark must be assessed based on all potential uses under the registration rather than actual use, and that the high cost of the services does not negate the likelihood of initial confusion.
The Court also cautioned against the unnecessary use of expert evidence in trade-mark confusion cases.
