Toronto Star

Canadian Tire says Walmart copied its Christmas lights

- FRANCINE KOPUN BUSINESS REPORTER

Canadian Tire Corp. Ltd. is suing Walmart Canada Corp. over clip-on Christmas lights.

The suit alleges Walmart Canada, working with two manufactur­ers in Taiwan, copied the constructi­on and packaging of Canadian Tire’s Noma Quick-Clip Lights. A statement of claim was filed Nov. 13 in the Federal Court of Canada on behalf of Canadian Tire.

The lights feature a spring-operated clip mechanism that can be used to mount, secure and display a string of holiday lights to eaves, shingles, trees, bushes and railings, according to the claim by Canadian Tire. The constructi­on makes it easy to adjust the position of the light after it is mounted.

A spokespers­on for Walmart Canada said the company has not yet filed a statement of defence. None of the allegation­s has been proven in court.

Canadian Tire alleges that Walmart is also using a photograph of the Ca- nadian Tire lights on the packaging of the copied product, sold at Walmart under the brand Holiday Time.

“The defendants are trying to obtain a marketing ‘free ride’ to create instant demand for the sale of their products, while avoiding product design and advertisin­g costs that they would otherwise need to expend if they were attempting to legitimate­ly create such public awareness and reputation in their own brand and products,” according to the claim.

Canadian Tire says it has invested millions of dollars in designing and developing private-label brands for sale over the years it has been in business.

The unique light socket and clip system was developed in 2013 and has sold strongly over the past two holiday seasons, according to the lawsuit. The claim says the Canadian Tire brand is solidly constructe­d and certified by the Canadian Standards Associatio­n while the Walmart Canada product is an “inferior lightweigh­t copy.”

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