Case details
Summary
Extended passing off protects a descriptive or generic term where it denotes a reasonably identifiable class of goods with a reputation and goodwill. The class need not be perceived as superior or have geographical significance. The claimant must establish goodwill, a misrepresentation likely to confuse a substantial number of relevant consumers, and damage or likely damage. Damage may include erosion of the term’s distinctiveness and diverted sales. A product incorporating genuine ingredients associated with the protected class may still be passed off where its name, get-up, merchandising and promotion create a misleading overall impression.
Factual background
The claim concerned VODKAT, a 22% alcoholic drink containing vodka and neutral fermented alcohol. The claimants marketed SMIRNOFF and other vodkas. They alleged that “vodka” denoted a defined class of goods with protectable goodwill and that VODKAT was marketed as vodka or as a weaker version of vodka.
The defendants relied on the regulatory definition of vodka, minor market exceptions, the product’s lower alcoholic strength and price, its descriptions as a spirit or schnapps drink, and the absence of an intention to deceive. The issues were whether “vodka” had the necessary goodwill, whether the marketing constituted a misrepresentation, and whether the claimants had suffered damage.
Held
- Extended passing off. The protected class must be identifiable with reasonable precision, have recognisable or distinctive qualities in the perception of the relevant public, and have a reputation giving rise to goodwill. There is no requirement that the class be geographically defined or perceived as superior. A liking for the class may generate goodwill just as a perception of superior quality may do so.
- Vodka. At the relevant date, “vodka” denoted a clearly defined class of goods. The regulatory definition, market practice and consumer perception established a class generally understood as a clear, tasteless, distilled, high-strength spirit. Minor exceptions, vodka-containing ready-to-drink products and vodka-based liqueurs did not destroy that definition. The term had a reputation and protectable goodwill.
- Misrepresentation. VODKAT’s name suggested vodka, a version of vodka, or a product containing vodka. Its descriptions, get-up, merchandising and promotion failed to distinguish it sufficiently from vodka. The later “Classic Schnapps Drink” description and New Get-Up remained insufficient, particularly given the product’s established history. Actual confusion supported the finding, but was not essential.
- Damage. The evidence established confusion among a substantial number of consumers. Some SMIRNOFF sales were lost through confusion, and the marketing was likely to erode the distinctiveness of “vodka” by extending it to lower-strength products containing fermented alcohol.
- Disposition. ICB had passed off VODKAT as vodka in both the Old Get-Up and the New Get-Up. The claim succeeded.
The court’s approach to earlier authorities
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