Toys “R” Us Succeeds in Trademark Lawsuit for “Depreciation of Goodwill” Against Canadian Dispensary Herbs “R” Us

Earlier this month the Canadian Federal Court handed retail toy store Toys “R” Us a victory in its trademark lawsuit alleging “depreciation of goodwill,” among other causes of action including trademark infringement and “passing off,” against B.C., Canada-based dispensary, Herbs “R” Us. For reference, the two logos can be seen here:

Toys “R” Us was successfully represented by Canadian firm Gowling WLG, which provided an overview of the case and the “depreciation of goodwill” cause of action that is similar to a “dilution” or “tarnishment” claim here in the United States. A “depreciation of goodwill” claim is intended to prevent the misuse of a trademark owner’s rights, even where the elements have not been met to show infringement based on likelihood of confusion or passing off. Such a claim requires that the trademark owner prove:

There has been trademark use of the brand owner’s registered trademark or a mark “sufficiently similar” to the registered trademark to evoke a mental association between the two marks; The brand owner’s trademark is sufficiently well-known to have significant goodwill attached to it (though does not require that the mark be famous); That the brand owner’s trademark was used in a manner likely

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