For several years, the residents of Smallville had been served by one prominent pizza franchise,…

For several years, the residents of Smallville had been
served by one prominent pizza franchise, Lotza Pizza, which had operated in
Smallville with the telephone number 456-1010. This telephone number
corresponded to that of the parent company, which was 123-1010 and was a
registered trademark of the company. The telephone number figured prominently
in the company’s advertising and jingles. A rival franchise of a competing
pizza company then moved into Smallville and established a similar operation.
That company, Better Pizza, also had a trademarked telephone number, which was
222-0234.
»

For several years, the residents of Smallville had been
served by one prominent pizza franchise, Lotza Pizza, which had operated in
Smallville with the telephone number 456-1010. This telephone number
corresponded to that of the parent company, which was 123-1010 and was a
registered trademark of the company. The telephone number figured prominently
in the company’s advertising and jingles. A rival franchise of a competing
pizza company then moved into Smallville and established a similar operation.
That company, Better Pizza, also had a trademarked telephone number, which was
222-0234. Just like Lotza Pizza, the telephone number played a large role in
the company’s promotions and was one of the major factors of customer
recognition. In Smallville, Better Pizza had obtained the number 457- 0234.
Smallville had only two exchanges, 456 and 457. Quon, a resident of Smallville,
who had the telephone number 456-0234 for almost 15 years, began to receive a
large number of inadvertent calls intended for Better Pizza. Quon soon tired of
receiving these calls and approached the local Lotza Pizza franchise. He told the
manager about his telephone number and the recurring problem. Shortly
thereafter, the Smallville Lotza Pizza franchise acquired Quons’ telephone
number 456-0234 and used it in its business. The local franchise of Better
Pizza, upon discovering the use by Lotza Pizza of the number 456-0234, brought
legal action against both the Smallville Lotza Pizza franchise and its parent
company. Discuss the nature of the action and the rights and liabilities, if
any, of the various parties involved. What arguments and/or defences may be
used, and what would be the likely outcome?

»

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