IP Law11 min read

Ontario Intellectual Property Law: Trade-marks, Copyright & Patents

Canadian IP rights overview, trade-mark registration process, copyright ownership rules, trade secret protection, IP due diligence in M&A, and enforcement remedies.

Updated June 2025

Intellectual property is governed by federal law in Canada — the Trade-marks Act, Copyright Act, Patent Act, and Industrial Design Act all fall under federal jurisdiction administered by the Canadian Intellectual Property Office (CIPO). Ontario commercial lawyers regularly advise on IP ownership, licensing, due diligence, and enforcement, even without being registered IP agents. This guide covers the framework that every Ontario commercial lawyer needs to understand.

Canadian IP Rights at a Glance

Trade-mark
What it protects: A word, logo, design, sound, or other distinguishing mark used to identify goods/services
Duration: 10 years from registration; indefinitely renewable as long as used
Registration: CIPO registration provides national rights; common law rights from use alone (limited geographic scope)
Key risk: Failure to use in Canada for 3+ years — vulnerable to expungement for non-use under s. 45 Trade-marks Act
Copyright
What it protects: Protects original works of authorship: literary, artistic, dramatic, musical, and computer programs
Duration: Life of author + 70 years (since 2022 CUSMA amendment); anonymous works: 75 years from publication
Registration: Automatic on creation; registration creates presumption of ownership and enables easier enforcement
Key risk: Ownership disputes — who created it? Employee vs contractor? Assignment in writing required for transfer
Patent
What it protects: Exclusive right to make, use, and sell a novel, non-obvious, and useful invention
Duration: 20 years from filing date; no renewal (maintenance fees required annually)
Registration: Must be filed with CIPO; PCT international applications available; provisional applications not available in Canada
Key risk: Public disclosure before filing destroys novelty (12-month grace period available in Canada for own disclosure only)
Industrial Design
What it protects: Visual features of shape, configuration, pattern, or ornament of a finished article
Duration: 10 years from registration
Registration: Must register with CIPO; application must be filed within 12 months of first publication
Key risk: No protection for functional features — only aesthetic aspects qualify
Trade Secret
What it protects: Confidential business information (formulas, processes, customer lists, algorithms) with commercial value
Duration: Potentially unlimited — as long as the secret is maintained
Registration: No registration — protected by contract, tort of breach of confidence, and equity
Key risk: No protection against independent discovery or reverse engineering; loses protection if secret is disclosed

Canadian Trade-mark Registration Process

StageWhoTimelineNotes
Clearance searchApplicant / counsel1-2 weeksSearch CIPO database, provincial business name registries, domain names, and common law use; assess risk of confusion with existing marks
Application filingApplicant / agent (CIPO-registered)Day 1File online via CIPO portal; identify mark, goods/services in NICE classes, basis (proposed use or current use); government filing fee per class
ExaminationCIPO examiner18-24 months from filingExaminer reviews for absolute grounds (descriptive, deceptive, prohibited marks) and relative grounds (confusingly similar to registered mark)
Office actionsApplicant / counselRespond within 6 months of office actionExaminer may object on descriptiveness, confusion, or other grounds; applicant responds with arguments and/or amendments
AdvertisementCIPOAdvertised in Trademarks Journal2-month opposition period; any person may file a statement of opposition claiming confusion or other grounds
Opposition (if filed)Opponent and applicant12-24+ monthsHeard before the Trademarks Opposition Board; evidence rounds, written arguments, oral hearings; appeal to Federal Court
Allowance and registrationCIPOCertificate issuedIf no opposition or opposition dismissed, CIPO issues registration; valid for 10 years from registration date

Copyright: Key Rules for Commercial Lawyers

Employee vs contractor
Employee-created work in the course of employment: employer owns copyright. Contractor-created work: creator owns unless assigned in writing. Always get written assignment in contractor agreements.
Moral rights
Authors retain moral rights (integrity and paternity) even after copyright assignment. Moral rights can only be waived, not assigned. Standard practice: include a moral rights waiver in all copyright assignments.
Crown copyright
Works prepared or published by or under the direction or control of the Crown (federal or provincial government) are subject to Crown copyright — 50-year term from publication. Third parties need licence.
Software copyright
Computer programs are protected as literary works. Object code and source code are both protected. AI-generated code raises new ownership questions under Canadian law — currently no clear statutory guidance.
Copyright registration
Registration is voluntary in Canada but creates a presumption of ownership and makes enforcement easier. Especially valuable for commercially significant works.
Fair dealing
Canadian fair dealing (s. 29 Copyright Act) is more limited than US fair use — applies to research, private study, education, parody, satire, criticism, review, and news reporting. Not a general public interest exception.

IP Enforcement Remedies

IP enforcement in Canada proceeds in the Federal Court (exclusive jurisdiction for most IP matters) or Ontario Superior Court. Federal Court is generally preferred for patent and trade-mark matters.

Injunction (interlocutory and permanent)
Most common first-order relief — prevents ongoing infringement; interlocutory injunction requires RJR-MacDonald 3-part test
Damages or account of profits
Plaintiff may elect between actual damages (losses suffered) or account of profits (infringer's gains from infringement) — election must be made before judgment
Delivery up / destruction
Order requiring infringing goods or materials to be surrendered to the plaintiff or destroyed; common in counterfeiting cases
Anton Piller order (civil search and seizure)
Ex parte order permitting plaintiff to enter defendant's premises to inspect and seize evidence of infringement — available in urgent cases where evidence may be destroyed
Statutory damages
Copyright Act permits election of statutory damages ($500-$20,000 per work for commercial infringement) without proving actual loss — significant in mass infringement cases
Criminal prosecution
Trade-marks Act and Copyright Act both contain criminal offences for willful large-scale commercial infringement; prosecuted by federal authorities

Frequently Asked Questions

How do you register a trade-mark in Canada?

Trade-mark registration in Canada is handled by the Canadian Intellectual Property Office (CIPO). The process: (1) conduct a clearance search on the CIPO database and common law; (2) file an application with CIPO identifying the mark, the goods/services (in NICE classification), and the basis (proposed use or use in Canada); (3) examination by CIPO (typically 18-24 months); (4) advertisement in the Trademarks Journal (2-month opposition period); (5) registration and issuance of certificate. Canadian trade-mark registrations last 10 years and are renewable.

Who owns copyright in work created by an employee in Ontario?

Under s. 13(3) of the Copyright Act, where an employee creates a work in the course of employment, the employer is the first owner of copyright — unless there is an agreement to the contrary. For independent contractors, the creator owns copyright unless it is assigned by written agreement. This distinction is critical in software development, creative services, and consulting agreements. Moral rights (right of integrity and right of paternity) always remain with the author even if copyright is assigned.

What protection do trade secrets get in Ontario?

Ontario does not have a dedicated trade secrets statute — protection comes from contract law (NDAs, employment agreements), the tort of breach of confidence, and equitable remedies. To qualify for trade secret protection: the information must be secret (not generally known or ascertainable), have commercial value because it is secret, and reasonable steps must have been taken to keep it secret. Unlike patents, trade secrets have no registration and potentially unlimited duration — but offer no protection against independent discovery or reverse engineering.

What is IP due diligence in an Ontario M&A transaction?

IP due diligence in an Ontario M&A transaction involves: reviewing all registered IP (trade-marks, patents, industrial designs, copyrights) for ownership, status, and encumbrances; confirming chain of title (assignment agreements, work-made-for-hire analysis for third-party developers); reviewing IP licences (inbound and outbound) for assignment and change-of-control provisions; assessing trade secret protection practices; reviewing open source software compliance; and identifying IP litigation or threats. IP due diligence findings directly affect representations and warranties and may require specific indemnities in the purchase agreement.

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