McDonald's Corp v Future Enterprises: Trade Mark Registration Dispute

McDonald's Corporation appealed the High Court's decision to allow Future Enterprises Pte Ltd to register the trade marks 'MacTea,' 'MacChocolate,' and 'MacNoodles.' McDonald's argued that these marks would likely deceive or cause confusion due to the similarity to their 'Mc' prefixed marks and that Future Enterprises acted in bad faith. The Court of Appeal dismissed the appeal, finding no likelihood of deception or confusion and insufficient evidence of bad faith.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Intellectual Property

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

McDonald's opposes Future Enterprises' trade mark registration for 'MacTea,' 'MacChocolate,' and 'MacNoodles,' alleging deception and bad faith. The appeal was dismissed.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Future Enterprises Pte LtdRespondentCorporationRegistration AllowedWon
McDonald's CorpAppellantCorporationAppeal DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of the Court of AppealYes
Tan Lee MengJudgeNo
Yong Pung HowChief JusticeNo

4. Counsels

4. Facts

  1. McDonald's opposed Future Enterprises' application to register 'MacTea', 'MacChocolate', and 'MacNoodles'.
  2. McDonald's claimed the 'Mac' prefix in Future Enterprises' marks would cause confusion with its own 'Mc' prefixed marks.
  3. Future Enterprises argued it adopted the 'Mac' prefix to project a 'sophisticated and western taste'.
  4. Future Enterprises' products are instant beverages and noodles sold in supermarkets.
  5. McDonald's products are primarily sold in its restaurants for immediate consumption.
  6. McDonald's has a series of registered marks with the 'Mc' prefix.
  7. Future Enterprises' marks include an eagle device along with the 'Mac' prefix and product name.

5. Formal Citations

  1. McDonald's Corp v Future Enterprises Pte Ltd, CA 32/2004, [2004] SGCA 50

6. Timeline

DateEvent
Future Enterprises Pte Ltd incorporated.
Future Enterprises produced 'MacCoffee'.
Future Enterprises produced 'MacTea'.
Future Enterprises started selling products locally.
Future Enterprises applied to register 'MacTea', 'MacChocolate' and 'MacNoodles' trade marks.
Appeal heard by the Court of Appeal.
Court of Appeal dismissed the appeal.

7. Legal Issues

  1. Likelihood of Deception or Confusion
    • Outcome: The court held that the registration of the application marks was not likely to deceive or cause confusion to the public.
    • Category: Substantive
    • Sub-Issues:
      • Visual similarity
      • Aural similarity
      • Conceptual similarity
  2. Good Faith in Trade Mark Application
    • Outcome: The court found insufficient evidence to support the claim that Future Enterprises' claim to proprietorship of the application marks was not made in good faith.
    • Category: Substantive
    • Sub-Issues:
      • Misappropriation of common distinctive prefix
      • Copying of naming system

8. Remedies Sought

  1. Prevention of Trade Mark Registration
  2. Injunction

9. Cause of Actions

  • Trade Mark Infringement
  • Opposition to Trade Mark Registration

10. Practice Areas

  • Trade Mark Registration
  • Intellectual Property Litigation

11. Industries

  • Food and Beverage
  • Fast Food

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Ravenhead Brick Co, Ld v Ruabon Brick & Terra Cotta Co, LdN/AYes(1937) 54 RPC 341N/ACited regarding the potential for confusion arising from similar marks.
In the matter of John Fitton & Company Limited’s ApplicationN/AYes(1949) 66 RPC 110N/ACited regarding the potential for confusion arising from similar marks.
UNIMAX Trade MarkN/AYes[1979] RPC 469N/ACited as an example of a series of marks having a common feature.
SEMIGRES Trade MarkN/AYes[1979] RPC 330N/ACited as an example of a series of marks having a common feature.
Re Application by Hardings Manufactures Pty Ltd (“Hardings Manufactures”)N/AYes(1987) 8 IPR 147N/ACited regarding the consideration of disclaimed elements in determining deceptive similarity.
In the Matter of an Application by Harrods LdN/AYes(1935) 52 RPC 65N/ACited regarding the attention given to uncommon elements in marks with a common denominator.
In the Matter of an Application by Smith Hayden & Coy, LdN/AYes(1946) 63 RPC 97N/ACited for the test to determine confusion under Section 15.
“Bali” Trade MarkN/AYes[1969] RPC 472N/ACited for the test to determine confusion under Section 15.
Kellogg Co v Pacific Food Products Sdn BhdCourt of AppealYes[1999] 2 SLR 651SingaporeCited for the approach to be taken in determining deception or confusion under Section 15.
McDonald’s Corporation v McBagel’s IncN/AYes85 Civ 7868, 10 Dec 1986United StatesCited as a case where McDonald's successfully opposed the use of 'McBagel'.
J&J Snack Foods Corporation v McDonald’s CorporationUnited States Court of AppealsYesUnited States Court of Appeals, Fed Cit, 17 May 1991United StatesCited as a case where McDonald's successfully opposed the use of 'McPretzel'.
In the Matter of an Application to Register the Mark McIndiansUK Patent OfficeYesUK Patent Office, 16 August 1996United KingdomCited as a case where an application to register 'McIndians' was refused.
Opposition by McDonald’s Corporation to the Registration of the Trade Mark McMintAustralian Trade Mark OfficeYesAustralian Trade Mark Office, 7 November 1997AustraliaCited as a case where McDonald's failed to oppose the registration of 'McMint'.
Opposition by McDonald’s Corporation to the Registration of the Trade Mark McVegAustralian Trade Mark OfficeYesAustralian Trade Mark Office, 10 November 1997AustraliaCited as a case where McDonald's failed to oppose the registration of 'McVeg'.
McDonald’s Corporation v Macri Fruit Distributors Pty LtdN/AYes[2000] ATMO 37AustraliaCited as a case where McDonald's successfully opposed the registration of 'McSalad' and 'McFresh'.
Yuen Yu Kwan Frank v McDonald’s CorporationN/AYes(2001) WL 1422899N/ACited as a case where the court allowed the registration of 'McChina'.
Harrods Limited v Harrodian School LimitedN/AYes[1996] RPC 697N/ACited regarding the concept of misappropriation in trade mark law.
Tiffany & Co v Fabriques de Tabac Reunies SACourt of AppealYes[1999] 3 SLR 147SingaporeCited regarding the likelihood of confusion in trade mark cases.
Super Coffeemix Manufacturing Ltd v Unico Trading Pte LtdCourt of AppealYes[2000] 3 SLR 145SingaporeCited regarding the sense of an ordinary purchaser in trade mark cases.
In the Matter of an Application by the Pianotist Company LtdN/AYes(1906) 23 RPC 774N/ACited regarding the factors to consider in determining likelihood of confusion.
In the Matter of Vitamins Ld’s ApplicationN/AYes[1956] RPC 1N/ACited regarding the rejection of trade mark applications due to copying.
Application by Brown Shoe Co IncN/AYes[1959] RPC 29N/ACited regarding the rejection of trade mark applications due to copying.
“GENETTE” Trade MarkN/AYes[1968] RPC 148N/ACited regarding the circumstances where a mark based on a previously asserted mark can be allowed.
“Royal Enfield” Trade MarksN/AYes[2002] RPC 24N/ACited regarding the standard of proof for allegations of bad faith in trade mark applications.
McDonald’s Corp v Silcorp LtdN/AYes(1989) 24 CPR (3d) 207N/ACited regarding the inability to claim a monopoly over the use of 'Mc' or 'Mac'.
McDonald’s Corp v Coffee Hut Stores LtdN/AYes(1994) 55 CPR (3d) 463N/ACited regarding the lack of inherent distinctiveness of McDonald's marks outside the fast-food business.
Future Enterprises Pte Ltd v Tong Seng Produce Pte LtdN/AYes[1998] 1 SLR 1012SingaporeCited regarding conflicting explanations for adopting the 'Mac' prefix.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Trade Marks Act (Cap 332, 1992 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Trade Mark
  • Trade Mark Registration
  • Deception
  • Confusion
  • Good Faith
  • Proprietorship
  • Prefix
  • Series of Marks
  • Likelihood of Confusion
  • Misappropriation

15.2 Keywords

  • Trade Mark
  • Registration
  • Opposition
  • McDonald's
  • Future Enterprises
  • MacTea
  • MacChocolate
  • MacNoodles
  • Confusion
  • Deception
  • Singapore

17. Areas of Law

Area NameRelevance Score
Trademarks95
Trademark Infringement80
Contract Law10

16. Subjects

  • Trade Marks
  • Intellectual Property
  • Trade Names