Problem 3 (25 marks)

Mickey's Restaurants Ltd. is a large firm that operates a chain

of 25 roadhouse-style restaurant/taverns across Canada under the name of

"Mickey's" and is well known nationally due to its extensive advertising

campaigns.

Mickey ("Mick") Dubb recently bought a restaurant/tavern, in

downtown St. Catharines. He formed a company under the name "Mickey Dee's Ltd."

and renamed the restaurant "Mickey Dee's". The signature item on the menu was a

large hamburger with 2 patties name the "Mickdubble". The dcor and furnishings

of Mick's restaurant are not at all like those of Mickey's chain, but the

external appearance, franchise colors, and signs bear some similarities. Mickey

plans to franchise the business in Ontario.

The president of Mickey's Restaurants Ltd. is angry because she

has been planning to open a franchise store in St. Catharines. She alleges that

Mick is attempting to deceive the public, is trading on her company's

reputation, and is benefitting from its advertising. She has written to Mick,

insisting that he change the name of his company and his restaurant and the

name of the signature burger since Mickey's Restaurants Ltd. sells its

signature burger under the name "McDouble".

Mick maintains that no one is confused, that he chose the name

"Mickey Dee's" deliberately distinguish his restaurants from those of the

chain, and that, since the principal owners of Mickey's Restaurants Ltd. are

not named Mickey, they are the ones who are trading improperly.

Mick comes to you for advice. He also asks if he can patent his

grandmother's recipe for fried chicken (which includes 13 secret herbs and

spices) and her recipe for pasta sauce. He intends to sell both from his

restaurant.

Required: Advise Mickey what legal actions might be taken

against him and whether or not they might succeed and the likelihood of

obtaining the patents.

NOTE: Please make the problem answer as detailed as possible using financial law terms as well as explaining them.