Executive Summary: Key Legal and Evidentiary Issues

• Plaintiff alleged trademark infringement, passing off, and depreciation of goodwill under the Trademarks Act related to its ECOLAB trademark.

• Defendant used similar marks (e.g., 3D ECO LAB, 3D ECO LABS) in connection with cleaning products, creating a likelihood of confusion.

• Evidence established that ECOLAB has been used extensively in Canada since 1986 and holds substantial goodwill.

• Defendant failed to file a Statement of Defence or respond to the action, leading to a default judgment.

• Court granted injunctive relief, destruction of infringing materials, and transfer of domain and social media accounts to the Plaintiff.

• Compensatory damages of $15,000 and costs of $10,280.53 were awarded due to prolonged infringement and willful disregard of Plaintiff’s rights.

Facts of the Case

Ecolab USA Inc., the Plaintiff, brought an action before the Federal Court of Canada against 2431717 Ontario Inc., operating as 3D Eco Chemical Labs Canada. The core of the dispute lay in the Defendant's use of trade names and trademarks—such as 3D ECO LAB, 3D ECO LABS, and related logos—that closely resembled Ecolab’s long-registered and widely-used ECOLAB trademark. The Plaintiff alleged that the Defendant's branding on cleaning and disinfecting products caused confusion among consumers, infringed its trademark rights, passed off its goods as those of the Plaintiff, and damaged the goodwill associated with the ECOLAB brand.

The Defendant, despite being served, did not file a Statement of Defence or otherwise participate in the proceedings. As a result, Ecolab moved for a default judgment under Rule 210 of the Federal Courts Rules. The case proceeded on an ex parte basis, relying on affidavits from Ecolab representatives and a private investigator documenting the Defendant’s use of the disputed trademarks.

Trademark Infringement and Passing Off

The Court found compelling evidence of trademark infringement under section 20 of the Trademarks Act. The ECOLAB mark had been used in Canada for nearly four decades in association with cleaning and disinfecting goods. The Defendant’s marks—particularly 3D ECO LAB and 3D ECO LABS—bore a strong resemblance to ECOLAB in both sight and meaning, especially to the casual consumer.

The Court also concluded that the Defendant engaged in passing off under subsection 7(b) of the Trademarks Act, as its use of similar marks in the same commercial channels risked misleading consumers into associating its products with Ecolab’s reputable brand. The Plaintiff suffered loss of control over its brand image and potential market confusion.

Depreciation of Goodwill

Under section 22, the Court determined that the Defendant’s actions likely depreciated the value of ECOLAB’s goodwill. The ECOLAB brand had a strong reputation and market presence, and its association with inferior or confusing products undermined its distinctiveness and commercial value.

Remedies and Damages Awarded

Given the clear evidence and Defendant’s default, the Court granted substantial remedies:

• A permanent injunction preventing the Defendant from further use of the infringing marks.

• An order for delivery up or destruction of all materials bearing the infringing trademarks.

• A transfer of the domain name www.3decolabs.com and associated social media accounts to the Plaintiff.

• Compensatory damages of $15,000 and costs of $10,280.53, reflecting the duration and seriousness of the infringement.

Outcome

The Court ruled in favour of Ecolab USA Inc., issuing a partial default judgment that addressed the core claims of trademark infringement, passing off, and depreciation of goodwill. While the Court did not find all of the Defendant’s marks (such as longer-form names like 3D ECO CHEMICAL LABS CANADA) to be infringing, it held that the core set of marks created sufficient confusion to justify legal remedies. The decision reinforces the importance of brand distinctiveness and the legal protections available under Canadian trademark law against infringing commercial behavior.