25 Oct 2023
DRAGONA CARPET SUPPLIES MISSISSAUGA INC v. DRAGONA CARPET SUPPLIES LTD et al
**I. Overview**
- Appellant Dragona Mississauga had initiated a legal action against respondents, alleging trademark infringement, and sought an injunction and damages.
- The Federal Court had dismissed Dragona Mississauga's action and had allowed the respondents' expungement claim.
**II. The Background**
- Two separate businesses, Dragona Scarborough and Dragona Mississauga, both used the DRAGONA trademark and were involved in the case.
- Dragona Scarborough had been founded in 1984, managed by Nizar, and had been run by his sons, Abad and Jamal. FlooReno had also been owned by Abad and Jamal.
- Dragona Mississauga had been founded in 1992 by Nizar and Talal, initially with equal ownership.
- Both businesses had operated jointly initially but had severed some ties in 2021.
- In 2012, Talal had purchased Nizar's shares in Dragona Mississauga, but the trademark ownership issue had remained unresolved.
- Talal had registered DRAGONA trademarks associated with Dragona Mississauga without opposition from Nizar.
- Mostapha had confirmed that Dragona Scarborough had owned the DRAGONA trademark, leading to no opposition to the registrations.
- The judge had considered this history when assessing the existence of an oral license.
- In 2020, FlooReno had displayed the DRAGONA trademark, leading to the lawsuit.
**III. Court Decision**
- The Federal Court had determined that Dragona Scarborough had had a longstanding and continuous right to use the DRAGONA trademark throughout the Greater Toronto Area.
- The appeal had been dismissed with costs.