“Canadian” Target
VS.
“American” Target
If you thought this was the “American” Target department store expanding its chain in Canada, it’s actually not; rather it’s a “Canadian” Target that sells discounted apparel. Recently, a Target has established a store in Nanaimo, BC and is scheduled to open another store in Sudbury, Ontario and then in Surrey, BC. Apparently, Isaac Benitah, Toronto fashion merchant, has owned the rights to the name “Target” in Canada for almost 10 years. However, US Target has challenged Mr. Benitah with the law. After five years of defying and taking the case to the Federal Court of Appeal, the results were in Mr. Benitah’s favour. This summer, the determined US company has reasoned with a Canadian trademark office that Mr. Benitah hadn’t used the name for three years. Thus, it has the right to be dissolved under domestic trademark laws.
This relates to the concept of intangible asset. The only way to define the borders of who owns the rights is by taking it to the law. I believe the Mr. Benitah has its rights to the name Target because he has owned it for almost a decade. Although he hasn’t used the name for three years, it’s still his. If someone purchased a house 10 years ago, didn’t live in it for three years, and now decides to use it, it’s still theirs. But I also understand US Target’s standpoint because if the name “Target” already exists in Canada, it wouldn’t be able to expand its chain of stores to Canada which will hinder its growth and success. From the state of the current situation, US Target appears to be very firm and affluent as it’ll continue to challenge Mr. Benitah until things are in their favour. We’ll have to wait for the war to end to see whose intangible asset it really is.
Source:
The Globe and Mail: Target has a problem. Its name is Target