The dispute
Killer Queen, LLC v Taylor was a trade mark appeal about two traders using almost the same personal name in connection with clothing and merchandise in Australia. On one side was Katie Jane Taylor, an Australian designer who had traded under the brand KATIE PERRY. On the other side was the US music artist known as Katy Perry, whose real name is Katheryn Hudson, together with associated companies including Killer Queen, LLC, Kitty Purry, Inc and Purrfect Ventures, LLC. The court recorded that Ms Taylor was born Katie Jane Perry, had also gone by Katie Howell and Katie Taylor, worked in retail and fashion, and started her own label in early 2007. She first used a different label name, then settled on KATIE PERRY. She registered the domain name www.katieperry.com.au on 2 May 2007. She later applied for a logo mark in September 2007, that application lapsed, and on 29 September 2008 she applied for registration of the word mark KATIE PERRY in class 25. Her products were described as luxury loungewear, including jogger-style pants and t-shirts, sold online, through wholesalers and from a showroom. On the celebrity side, Ms Hudson's career was managed by Direct Management Group. The judgment says her management team was actively planning her music career, touring and commercial opportunities from at least 2007, and by early 2008 considered Australia to be an important market. In anticipation of the 2008 Warped Tour, management pursued merchandising opportunities and caused a US application to be filed for the KATY PERRY word mark, including for apparel in class 25. Merchandise branded KATY PERRY was designed and sold at concerts. By July 2008, management saw significant commercial opportunity in worldwide and online sales of Katy Perry merchandise, including in Australia, and engaged Bravado, a music merchandise company, to help with physical retail distribution and online sales. The court noted that Ms Hudson was closely involved in selecting and approving designs and merchandise generally and in particular regions. The extract says that in May 2009 Ms Hudson's side became aware of Ms Taylor's Australian application for KATIE PERRY for clothes. A cease and desist letter was sent. The parties then explored a possible coexistence arrangement. On 26 June 2009, Ms Hudson applied to register KATY PERRY in classes 9, 25 and 41, and also sought an extension of time to oppose Ms Taylor's application. That opposition step was withdrawn before hearing on 16 July 2009. The Full Court expressly noted that Ms Hudson sought registration in class 25 but later withdrew that application, registering the mark only in classes 9 and 41. Ms Taylor's mark was entered on the Register on 21 July 2009. The commercial relationship on the celebrity side became more complex over time. Kitty Purry was incorporated in April 2008, with Ms Hudson as sole director, CEO, secretary, CFO and shareholder. Killer Queen was incorporated in August 2009 with Ms Hudson as sole shareholder and director. Purrfect Ventures was incorporated in September 2016. The extract records licensing and assignment arrangements involving these entities. In 2011 Kitty Purry entered into an agreement with Bravado Merchandising for sale of Katy Perry branded merchandise and licence rights in relation to the KATY PERRY mark, signed by Ms Hudson for Kitty Purry. Merchandise bearing the Katy Perry mark was sold on the Australian leg of the California Dreams Tour. In December 2011, Ms Hudson assigned rights and interests in identified trade marks to Killer Queen. In 2014 Kitty Purry entered into another Bravado agreement in anticipation of the Prismatic Tour, and merchandise bearing the Katy Perry mark was sold at Australian pop-up stores. The litigation itself concerned alleged infringement after 24 October 2013, which the primary judge treated as the earliest date permitted by the limitation period. The pleaded conduct involved a range of channels, including tweets, Facebook posts, websites, tour merchandise, pop-up stores, Target, Harris Scarfe, Best & Less and other retail activity. The case also raised whether related companies such as Killer Queen, Kitty Purry and others were liable as joint tortfeasors for conduct carried out through Bravado, Blackout Merch and Epic Rights. At first instance, Ms Hudson and Kitty Purry were found to have infringed Ms Taylor's mark in some respects, additional damages were awarded, and the cancellation attack failed. On appeal, the Full Federal Court revisited the scope of the goods covered by "clothes", the joint tortfeasor findings, the statutory defences, and the cancellation grounds. The appeal ended with the original infringement proceeding being dismissed and Ms Taylor's registration ordered to be cancelled.
The legal question
The Full Federal Court had to resolve whether use of the KATY PERRY name and related branding on merchandise and promotional materials in Australia infringed Ms Taylor's registered KATIE PERRY trade mark, whether associated companies were liable as joint tortfeasors, and whether statutory defences such as good faith use, honest concurrent use and own name applied. Most importantly, it had to decide whether Ms Taylor's registration should remain on the Register or be cancelled because use of the registered mark would be likely to deceive or cause confusion, including by reason of the reputation in the prior KATY PERRY mark and the circumstances existing when rectification was sought.
Decision
The Full Federal Court allowed the appeal in part and the cross-appeal in part. It set aside the key first instance orders, dismissed Ms Taylor's originating application, allowed the cross-claim, and ordered rectification of the Register by cancelling trade mark no. 1264671. It also ordered Ms Taylor to pay the appellants' costs of the appeal and cross-appeal, while remitting the question of first instance costs to the primary judge for re-determination. The court stayed cancellation pending any special leave application and any High Court appeal. The extract makes clear that the decisive point was the court's conclusion that the primary judge had erred in leaving the KATIE PERRY mark on the Register.