Background:

• Leonard B. French created the "Poppy Puppy" and sold units to the Royal Canadian Legion (Legion). Years later, French sued the Legion, alleging false claim of authorship and infringement of his moral rights due to a statement in the Legion's Supply Catalogue, which he contended misrepresented the Legion as the creator of the Poppy Puppy.

Legal Issues:

• The main issue was whether subsection 64(2) of the Copyright Act, which limits copyright and moral rights for designs on industrial products, applied to the Legion’s activities, thus preventing French’s claim of moral rights infringement.

Court’s Analysis and Decision:

• The Federal Court of Appeal considered the scope of subsection 64(2) and whether it provided a defense against French's moral rights infringement claim.
• The court found that the defense under subsection 64(2) could apply, reasoning that infringement of moral rights must be connected with copyright activities, and if such a connection does not exist, there would be no infringement.
• The court also addressed the argument that the Legion’s actions should not benefit from subsection 64(2) if they did not involve reproducing the design, but found this interpretation could lead to an illogical outcome.

Outcome:

• The appeal was dismissed, with the court ruling that the Legion’s actions fell within the exceptions of subsection 64(2), thereby not infringing French’s moral rights.
• The court decided not to rule on costs immediately, opting to establish a timetable for submissions on the issue.