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Find a Lawyer » Canada Legal Guides » Money, Taxes & IP Canada » Copyright, Trademark & Patents Canada » Proposed Use vs Existing Use Trademarks in Canada

Proposed Use vs Existing Use Trademarks in Canada

27 Jun 2026 4 min read No comments Copyright, Trademark & Patents Canada
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Following major 2019 updates to the federal Trademarks Act, Canadians no longer need to prove actual “use” of a trademark before registration. You can now confidently file an application based purely on proposed use, paying the standard CIPO filing fee of $491.06 CAD.

For decades, Canadian business owners faced a strict hurdle when trying to protect their brand names. Before 2019, you could not finalize a trademark registration unless you submitted a formal Declaration of Use, proving that you were already selling goods or services under that name.

Today, the landscape is entirely different. To align with international treaties, Canada removed this strict requirement. This means entrepreneurs in cities like Winnipeg, Edmonton, and Ottawa can secure their brand rights before launching their products. However, this shift also introduced new risks, such as “trademark squatters.” Generally, understanding the balance between proposed use and existing use is critical for any modern business. 🚀

Step-by-Step Process in Canada

Whether your business is operating in British Columbia or Nova Scotia, the federal process managed by the Canadian Intellectual Property Office (CIPO) remains the same. Here is how you navigate filing a trademark today.

Step 1: Conduct a Comprehensive Search

Because you no longer need to prove use to file, more companies are applying for trademarks than ever before. You must search the CIPO database and NUANS to ensure no one else has already claimed your proposed brand name. Skipping this step can lead to a direct refusal.

Step 2: File the Application

Submit your application online through the CIPO portal. You will describe your goods and services using the Nice Classification system. You do not need to indicate whether you are currently using the mark or merely proposing to use it; CIPO no longer requires this distinction on the form. 📝

Step 3: Monitor for Oppositions

After a CIPO examiner approves your application, it will be published in the Trademarks Journal. Other businesses have a window of time to oppose your registration if they feel it infringes on their existing rights. If no one opposes, your mark moves to registration.

Step 4: Actively Use the Trademark

Even though you do not need to prove use to register the trademark, you must actively use it in the Canadian market to keep it. If you register a mark and do not use it for three consecutive years, it becomes vulnerable to cancellation. 💼

Pre-2019 vs Post-2019 Rules

RequirementPre-2019 RulesCurrent Rules (June 2026)
Declaration of UseMandatory before registration could be finalized.Completely eliminated. No proof of use required to register.
Filing BasisHad to declare “actual use” or “proposed use” on the form.No need to declare the basis of filing on the application.
Non-Use VulnerabilitySection 45 proceedings could cancel marks not used for 3 years.Section 45 still applies. You must use it within 3 years of registration.

How Much Does it Cost in Canada?

Filing a trademark based on proposed use carries the same fees as any other trademark application. As of June 2026, standard costs include:

  • CIPO Application Fee: The base online fee is $491.06 CAD for the first class of goods or services.
  • Additional Classes: You must pay $149.04 CAD for each extra Nice Class you include.
  • Law Firm / Agent Fees: Hiring a professional to conduct a search and file correctly usually costs between $1,000 CAD and $2,500 CAD.

How Long Does the Process Take?

Because the removal of the “use” requirement caused a massive surge in applications, CIPO is currently facing long backlogs. Generally, it takes 18 to 24 months for an examiner to even review your file. The entire process to full registration often takes 2 to 3 years. ⌛

Frequently Asked Questions (FAQ)

What is a trademark squatter?

Because anyone can file for a trademark without proving use, some bad-faith actors (squatters) register popular foreign brand names in Canada before the real owners do, hoping to sell the rights back to them at a massive markup.

What is a Section 45 proceeding?

Under Section 45 of the Trademarks Act, anyone can challenge your trademark if it has been registered for three years. CIPO will force you to submit evidence showing actual commercial sales in Canada. If you cannot, your trademark will be cancelled.

Do I get any rights just by using a name without registering it?

Yes. Canada is a “common law” country. If you use a brand name extensively in a specific area (like just in Toronto), you earn unregistered common law rights. However, registering it gives you powerful, exclusive rights across the entire country.

Should I apply for a trademark before starting my business?

Generally, yes. Filing early under the proposed use model secures your place in line at CIPO and prevents competitors from registering the name while you are still developing your products.

The transition away from requiring actual use has made it easier than ever for startups to secure their intellectual property. However, navigating the risks of non-use cancellations requires careful strategy. We recommend searching our directory to find a licensed trademark agent or law firm to protect your business interests safely.

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