The respondent owned the trademark 'Wingen' for its software and used it as its website domain name.
The appellant sold 'Wingen' computers in the US but not in Canada, and operated a passive website.
US customers mistakenly visited the respondent's website, allegedly overwhelming it and ruining the respondent's business.
The trial judge found trademark infringement and awarded damages.
On appeal, the Court of Appeal held that a passive website does not constitute 'use' of a trademark in association with goods in Canada under the Trade-marks Act, as it cannot effect a transfer of property.
The appeal was allowed and the action dismissed.