Does IP holding company exercise "financial control" over sibling licensee for the purposes of the Trade Marks Act if they have the same parent?

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SH1

Member
21 April 2021
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Imagine a corporate structure where there is a ParentCo, which wholly owns two subsidiaries: the first subsidiary is IPHoldCo (which owns Trade Mark X) and the other subsidiary is TradeCo. IPHoldCo grants an exclusive licence to TradeCo (its sibling) allowing TradeCo to use TradeMark X. Does the mere fact that both subsidiaries share the same parent mean that IPHoldCo exercises "financial control over TradingCo's relevant trading activities" so as to mean that TradingCo is an "authorised user" under s8 of the Trade Marks Act? What are the main cases that highlight this?
 

Docupedia

Well-Known Member
7 October 2020
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