U.S. News | Budway Ordered to Pay Subway $40,000 for Trademark Infringement

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A Federal Court of Canada has ordered Budway, an unlicensed cannabis retail store in East Vancouver to pay fast-food giant, Subway $40,000 for trademark infringement and damages.

According to the ruling, the store’s name and signage were too close to that of Subway and the use of a mascot in the shape of a subway sandwich filled with cannabis leaves and with bloodshot eyes damaged subway’s brand reputation.

The judge, Justice Nicholas McHaffie reportedly ruled that the use of the name Budway with the same registered font including arrows on the ‘B’ and ‘Y’ as Subway was an infringement, caused confusion and was likely to depreciate the goodwill attached to the registered Subway trademark.

In the initial lawsuit, the plaintiff alleges that the defendant is using a similar logo and name without subway’s permission and authorization which has affected the brands reputation, caused confusion and unfair competition.

The judge ordered Budway, Cannabis & Wellness Store and owner William Matovu to pay $15,000 in damages to Subway and $25,000 to cover Subway’s legal fees. Budway has also been ordered to destroy any goods, packaging, labels and advertising material that bear its logo.

The case is now closed.

Subway IP LLC v. Budway, Cannabis & Wellness Store

Judge: Justice Nicholas McHaffie
Court: Canadian Federal Court
Case #: 2021 FC 583
Nature of Suit: Trademark
Cause: Trademark Infringement
Case Terminated: June 11, 2021


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About Nathaniel Adebayo 754 Articles
Nathaniel is a News Reporting Intern at Nigerian Law Intellectual Property Watch (NLIPW). He has a passion for writing, capacity building and social media marketing. He is a graduate of Federal University of Technology, Minna, where he graduated with BTECHAGRIC. He is a member of Soil Science Society of Nigeria (SSSN) and the National Union of Campus Journalist (NUCJ). Nathaniel has served as Editor-in-Chief for a number of magazines and as a contributor to various online repositories. Email: anathaniel@nlipw.com

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