secondary commercial functions extend beyond
Page 157 of [2004] 4 All SA 151 (SCA)
the "badge of origin" concept. Section 34(1)(c) in particular is not concerned with either origin or confusion. It
protects the economic value of a trade mark, more particularly its reputation and its advertising value or
selling power.16 As summed up by Tony Martino:17
"A trade mark is a 'creative "silent salesman'" stimulating sales by creating goodwill and assuring buyers that all
goods bearing the same mark have the same quality. 'The mark actually sells the goods'; the more distinctive the
mark, the greater its selling power."18
[14] The antidilution doctrine can be traced to German jurisprudence but was first formulated with a measure of
precision by Frank I Scheckter.19 What Scheckter principally had in mind was dilution by means of blurring of a
trade mark when used on noncompeting goods. He gave the example of the blurring of RollsRoyce if the
mark were to be used for restaurants, cafeterias, pants or candy. A modern German
View Parallel Citation
example is the use of the trade mark Dimple for whiskey in relation to cosmetics.20
[15] The instant case is, however, not concerned with blurring but rather with tarnishment. FW Mostert 21 quotes
another German case to illustrate: the owner of the wellknown perfume "4711" was able to interdict a sewer
company from using the number on a malodorous tank truck even though the number only formed part of its
telephone number. Courts in different jurisdictions have come to similar conclusions on similar facts in this
regard. For instance, the use of the American Express charge card and the slogan "Don't leave home without
it" in relation to condoms was not acceptable to a US court.22 In Germany, the Federal Supreme Court found
that the use of the confectionery trade mark Mars and its slogan that it will liven you up in relation to a gag
item consisting of a condom, tarnished Mars.23 And in England an attempt to register Visa as a trade mark,
also in relation to condoms, was dismissed on the same ground.24
[16] In the USA some states adopted antidilution statutes, the first being Massachusetts in 1949.25 The problem
is that these laws are not in identical
Page 158 of [2004] 4 All SA 151 (SCA)
terms. As far as the federal position is concerned, Congress in 1995 amended section 43 of the Trademark Act
of 1946 (the Lanham Act) to provide a remedy for the dilution of famous marks.26 That amendment, the
Federal Trademark Dilution Act (FTDA), provides that
"the owner of a famous mark shall be entitled, subject to the principles of equity and upon such terms as the court
deems reasonable, to an injunction against another person's commercial use in commerce of a mark or trade
name, if such use begins after the mark has become famous and causes dilution of the distinctive quality of the
mark, and to obtain such other relief as is provided in this subsection."
FDTA describes the factors that determine whether a mark is "distinctive and famous," and defines "dilution"
as "the lessening of the capacity of a famous mark to identify and distinguish goods or services." It sets out a
number of specific defences namely fair use of a famous mark by another person in comparative commercial
advertising or promotion to identify
View Parallel Citation
the competing goods or services of the owner of the famous mark; noncommercial use of a mark; and all
forms of news reporting and news commentary.
[17] A European Community directive27 provides in relation to trademark infringement, inter alia, as follows in
article 5:
"2.
Any Member State may also provide that the proprietor shall be entitled to prevent all third parties not
having his consent from using in the course of trade any sign which is identical with, or similar to, the trade
mark in relation to goods or services which are not similar to those for which the trade mark is registered,
where the latter has a reputation in the Member State and where use of that sign without due cause takes
unfair advantage of, or is detrimental to, the distinctive character or the repute of the trade mark."
"5.
Paragraphs 1 to 4 shall not affect provisions in any Member State relating to the protection against the use
of a sign other than for the purposes of distinguishing goods or services, where use of that sign without due
cause takes unfair advantage of, or is detrimental to, the distinctive character or the repute of the trade
mark."
[18] This led to a White Paper on the "Reform of Trade Mark Law", 1990 in the United Kingdom. The subsequent
UK Trade Marks Act 1994 (ch 26) deals with the issue in section 10(3):
"A person infringes a registered trade mark if he uses in the course of trade a sign which
(a)
is identical with or similar to the trade mark, and
(b)
is used in relation to goods or services which are not similar to those for which the trade mark is registered,
where the trade mark has a reputation in the United Kingdom and the use of the sign, being without due cause,
takes unfair advantage of, or is detrimental to, the distinctive character or the repute of the trade mark."