(i) on 5 February 2001 when King replied on behalf of JCFS to a letter of demand received from
Werksmans Attorneys on behalf of the applicant, alleging infringement and passingoff by use of
the mark JACOBSEN'S, King failed to mention that JCFS was using the mark under licence from the
first respondent and that the first respondent had acquired the mark from Cargo Card (Pty) Ltd on
22 March 1994. Instead King simply alleged that JCFS had traded under its name since 1989 and
had developed a trading identity entirely distinct from that of Jacobsen's Publishers. King also
referred to the applicant's rights in respect of the mark and gave an undertaking on behalf of
JCFS, both of which are inconsistent with the first respondent's allegation that it has all the right,
title and interest in relation to the mark; and
(ii) in the plea dated 17 January 2003 filed on behalf of JCFS in the passingoff action instituted
against it by the applicant, JCFS did not allege how the first respondent had acquired the right,
title and interest to the name JACOBSEN'S. It is simply alleged that it made use of the mark
JACOBSEN'S with the permission of the first respondent. The substantive allegations raised by the
first respondent in the present case are not set out.
[31] The agreement with JCFS in September 1998
King alleges that when approached by Neil Jacobsen in September 1998 to stop using the name JACOBSEN'S
the request and the agreement related only to the deletion of the name JACOBSEN'S from the company's
name and that Neil Jacobsen had no objection to the company continuing to do business under the name
Jacobsen's Computer Freight Systems. He
Page 602 of [2005] 2 All SA 588 (T)
also alleges that he pointed out that the first respondent still had all the rights to the mark JACOBSEN'S.
[32] I agree with the applicant's counsel that these allegations are so farfetched and clearly untenable that they
should be rejected on the papers. My reasons are as follows
(1)
It is common cause that Neil Jacobsen requested King to have the name JACOBSEN'S removed form
JCFS's registered company name and that King agreed to do this and that the name was changed with
effect from 17 November 1998;
(2)
In view of the reason for approaching King on behalf of JCFS it is highly improbable that Neil Jacobsen
would insist on the company deleting the name JACOBSEN'S from its company name but agree to its
trading under the name Jacobsen's Computer Freight Systems. This would have defeated the object of
the change of the company's name;
(3)
In view of the warranties given by Neil Jacobsen to the applicant pertaining to the existence of the
intellectual property rights and the rights of other persons in respect of the intellectual property it is
highly improbable that he would have placed himself and the whole transaction at risk by agreeing to
allow the use of the mark JACOBSEN'S in the business name of JCFS or at all;
(4)
King is demonstrably unreliable on the question of what was discussed about the rights to the mark;
(5)
King is demonstrably unreliable about the ancillary question of whether JCFS repaid Neil Jacobsen's loan
or not.
[33] There was therefore neither a legal nor a factual basis for the alleged disposition of the mark JACOBSEN'S by
Jacobsen's Publishers to Cargo Card (Pty) Ltd and by Cargo Card (Pty) Ltd to the first respondent.
[34] Expungement in terms of section 10(3)
Section 10(3) provides for the removal from the register of a mark in relation to which the applicant for
registration has no bona fide claim to proprietorship. The criteria for deciding whether a claim is bona fide are
the same under the Act and the old Act. These criteria were summarised by the Honourable WJ Trollip in his
determination dated 31 May 1986 in Moorgate Tobacco Co Ltd v Philip Morris Inc at 5860 as follows (his further
observations are not relevant):
"The true meaning of section 20(1) has caused our courts some difficulty. See Broadway Pen Corporation v
W e c h s l e r & C o ( P t y ) L t d 1963 (4) SA 434 ( T ) a t 4 4 4 ; Oils International (Pty) Ltd v Wm Penn Oils Ltd
1965 (3) SA 64 (T) at p701, and on appeal, 1966 (1) SA 311 (A) at p317FG; P Lorillard Co v Rembrandt Tobacco
Co (Overseas) Ltd 1967 (4) SA 353 (T) at p356DF. The effect of the relevant dicta in those decisions can be
summarised thus. An applicant can rightly claim to be the commonlaw proprietor of the trade mark if he has
originated, acquired or adopted it and has used it to the extent that it has gained the reputation as indicating that
the goods in relation to which it is used are his. (See Chowles and Webster, South African Law of Trade Marks, 2
ed at p61). He can then claim to be registered as the statutory proprietor of the trade mark with all the benefits
and rights conferred by our Act. But section 20(1) is not confined to that kind of applicant. It also applies to one
that
Page 603 of [2005] 2 All SA 588 (T)
has originated, acquired or adopted the trade mark, but has heeded to not use it all, or to the requisite extent,
provided he proposes to use it."
See Victoria's Secret Inc v Edgars Stores Ltd 1994 (3) SA 739 (A) at 744A745B; Tie Rack Plc v Tie Rack Stores
(Pty) Ltd and another 1989 (4) SA 427 (T) at 446EI: Webster & Page paragraph 3.52.
[35] In Victoria's Secret Inc v Edgars Stores Ltd (supra) at 744D745B the court considered the meaning of the
words "claiming to be the proprietor of a trade mark" in section 20 of the old Act and concluded that