Natalie Smith is the founder of Natalie's Natural Beauty Products Inc.Her company imports, sells and distributes olive oil-based skin care and body products manufactured in Turkey exclusively for Smith. Smith filed a trademark application, hoping to operate her business under the trademarkNatalie's Naturals.Larkin industries already sells juices under the trademark'Naturals'and other marks that include the word'Naturals',such asNaturals Classique.Larkin opposes the application and alleges that Smith is infringing its trademark rights by using aconfusingly similar design. Smith's beauty products are generally soldin upscale grocery andspecialty stores, where Larkin's juices are generally carried at mainstream grocery stores.

The Court of Appeal decides in favour ofSmith'scompany, finding that confusion was unlikely. The court also finds that Larkin filed an unnecessary injunction application, sent threatening letters and engaged in overly complicated litigious conduct, which the court believes is menacing and abusive behaviour. Larkin, however, successfully appeals the decision of the Court of Appealbut Larkin'sconduct has also resulted in substantial public criticism. As a result of media attention by local newspapers and bloggers on social media sites,#naturalsbecomes the most locally hashtagged term on Twitter. Because of this onslaught of negative publicity, Larkin has offered a large settlementto Smith's company.

Do you agree with the decision thatNatalie's Naturalsis not confusingly similar toNaturalsjuice products? Explain your answer. Consider the impact of social media in this case. How do you think social media is changing the face of business management? If you were part of Natural's management team, whatlegal steps would you adopt to avoid a similar situation in the future?