AM Moolla Group Ltd and others v The GAP Inc and others
[2005] 4 All SA 245 (SCA)
Division:
Supreme Court of Appeal
Date:
9 September 2005
Case No:
123/04
Before:
LTC Harms, PE Streicher, FDJ Brand, CH Lewis and VM Ponnan JJA
Sourced by:
PR Cronjé
Summarised by:
D Harris
Parallel Citation:
2005 (6) SA 568 (SCA)
. Editor's Summary . Cases Referred to . Judgment .
[1] Intellectual property law Trade Marks Act 194 of 1993 Section 35(3) Validity of claim to proprietorship of trade
mark on the ground that it is a wellknown trade mark that is entitled, without registration in this country, to protection
under section 35(3) A local mark, validly appropriated, cannot lose its value or protection simply because someone else's
reputation overtakes its business.
[2] Intellectual property law Trade mark infringement Principle of territoriality A trade mark is purely a territorial
concept, and therefore is legally operative or effective only within the territory in which it is used and for which it is to be
registered The fact that a trade mark is registered and has been used, even extensively, by one person in a foreign
country does not in itself constitute a bar to its adoption and registration by some other person in South Africa.
[3] Trade Marks Trade Marks Act 194 of 1993 Section 35(3) Validity of claim to proprietorship of trade mark on the
ground that it is a wellknown trade mark that is entitled, without registration in this country, to protection under section
35(3) of Act A local mark, validly appropriated, cannot lose its value or protection simply because someone else's
reputation overtakes its business.
[4] Words and phrases "wellknown" Trade Marks Act 194 of 1993 Section 35(3) Section grants protection to a
wellknown mark against unregistered marks and not against marks registered locally.
Editor's Summary
The parties herein were in dispute about the use of registered trade marks containing the word "Gap". The
respondents claimed proprietorship of the marks on the ground that GAP is a wellknown trade mark that is
entitled, without registration in this country, to protection under section 35(3) of the Trade Marks Act 194 of 1993
("the Act").
In the court a quo, that argument was upheld, and an interdict granted against the appellants preventing them
from using a reproduction of the respondent's GAP marks in relation to clothing or retail clothing outlets.
Held After setting out the history of the respondent's use of its trade mark internationally, the Court explained the
principle of territoriality applicable to trade marks. It referred to the case of Victoria's Secret Inc v Edgars Stores Ltd
1994 (3) SA 739 (A) where it was pointed out that a trade mark is purely a territorial concept; and therefore is
legally operative or effective only within the territory in which it is used and for which it is to be registered. The fact
that a trade mark is registered and has been used, even extensively, by one person in a foreign country does not in
itself constitute a bar to its adoption and registration by some other person in South Africa.
Page 246 of [2005] 4 All SA 245 (SCA)
This led to the question of the special protection of wellknown trade marks. The Court set out examples of such
special protection, explaining that such instances of protection differs from ordinary statutory trade mark protection
primarily because they provide an exception to the principle of territoriality. It remained to decide whether the
respondents had made out a case for such protection.
The appellants submitted that the respondent's claim based on section 35(3) of the Act was flawed because the
section grants protection to a wellknown mark against unregistered marks and not against marks registered locally.
The question was whether the respondent's GAP marks were well known in South Africa and, if so, since when. The
Court decided that a local mark, validly appropriated, cannot lose its value or protection simply because someone
else's reputation overtakes its business. Although the marks in question appeared to be reproductions of the
respondents' marks, the crucial point was that when any reproduction took place, it was not of a "wellknown" mark
but of a mark not well known within this country. The appellants were the first proprietor of these marks in South
Africa and became the proprietor at a stage when the respondents' marks were not yet well known.
The court a quo was correct in its finding, and the appeal was dismissed.
Notes
For Trade Marks see:
· LAWSA First Reissue (Vol 29, paras 1306)