Partial Default Judgment Relating To Various ECO And LAB Trademarks Granted

On April 1, 2025, the Federal Court (the Court) issued its decision in Ecolab USA Inc. v. 2431717 Ontario Inc. (3D Eco Chemical Labs Canada), 2025 FC 595, partially granting  a motion for default judgment in favour of the Plaintiff, Ecolab USA Inc., and restricting the Defendant, 3D Eco Chemical Labs Canada, from using various ECO and LAB formative marks (the Defendant Marks) in association with cleaning and disinfecting products.

The Plaintiff is the owner of the ECOLAB trademark, which is registered in Canada in association with a wide variety of goods, including cleaning and disinfecting products. The Plaintiff sued the Defendant, alleging that the Defendant’s use of the Defendant Marks infringe and depreciate the value of the goodwill of its ECOLAB trademark contrary to sections 20 and 22 of the Trademarks Act (the Act); and that the Defendant’s use of the Defendant Marks within its domain names and social media accounts is likely to cause public confusion and constitute passing off under section 7(b) of the Act. The Defendant did not file a Statement of Defence. As a result, the Plaintiff brought an ex parte motion seeking an order for default judgment against the Defendant.

The Court first found that the Defendant was in default of its obligation to file a Statement of Defence under the Federal Court Rules. The Court then found sufficient evidence establishing both the Defendant’s infringement and depreciation of goodwill of the Plaintiff’s ECOLAB trademark along with passing off with respect to certain Defendant Marks. Notably, the Court concluded that there was a likelihood of confusion between the Plaintiff’s ECOLAB trademark and some Defendant Marks that included the words “ECO” and “LAB” without any other words separating them, and the Plaintiff experienced a loss of control over how its ECOLAB trademark was being used in association with cleaning and disinfectant goods.

The Court granted, in part, the Plaintiff’s motion for default judgment, ordering a permanent injunction against the Defendant; the delivery up or destruction of the Defendant’s printed and electronic materials displaying certain infringing Defendant Marks; termination of all Defendant social media accounts featuring the ECOLAB trademark; and the transfer of ownership in Defendant domain names that violate the Plaintiff’s rights under the Court’s judgement.

Summary By: Victoria Di Felice