Trans-High Corporation v. Hightimes Smokeshop and Gifts Inc., 2015 FC 919

In this case, Trans-High had previously been successful in a trademark infringement action (Decision heresummary here). Hightimes had been enjoined from selling, distributing or advertising any goods and services in association with the Applicant's mark.However, the respondent continued to do so. A contempt hearing took place where the Respondent pleaded guilty to contempt.These reasons address remedies.

The Court held that in this case, the acts of contempt are both objectively and subjectively serious, as the Respondent's behaviour challenges both the judicial authority of the Court and the public's confidence in the administration of justice. It took the Respondent 15 months to amend their corporate registration; 16 months to remove the signage from their shop; and the transfer of the domain name and payment of damages and costs has yet to occur. No explanation for the delay was offered. The Applicant repeatedly offered leniency in exchange for compliance, but was met with obfuscation and evasion.

The Court held that although this was the first contempt conviction, the respondent has a history of trademark infringement. A further mitigating factor was the size of the Respondent's business. An award of $10,000 for each count of contempt was granted, for a total of $50,000. However, this amount will be reduced to $10,000 if the Respondent pays the monetary damages owed under the infringement decision, and its costs owed under this decision within 30 days. Furthermore, if the order is not satisfied within 30 days, the respondent will be imprisoned for 14 days, and until the penalties are paid. Costs on a solicitor and client basis were fixed at $62,500.