In what has been described as a case of David vs. Goliath, the Chilkoot and Molson brewing companies are locked in a trademark dispute over the legal right to use the word 'Arctic'.

Bob Baxter, the owner of Chilkoot Brewing Co. Ltd., said Thursday the two companies got into a dispute over the use of the word when he tried to trademark the brand Arctic Red in December 2001 after the beer had been on the market for nearly two years.

Chilkoot Brewing Co. Ltd. also operates as the Yukon Brewing Company.

Baxter said when he tried to trademark the name of the company's popular beer with the Canadian Intellectual Property Office (CIPO), he learned that Molson challenged the move on the grounds that the conglomerate company owned the rights to the word 'Arctic' in the Canadian beer world.

'When we applied for a trademark, Molson opposed it. They opposed it and then we got into a fuss,' Baxter said in an interview.

'They have an Arctic trademark when it comes to beer.'

Baxter said after unsuccessful negotiations with the company in April 2004, his company entered into a quasi-legal CIPO process in December 2004 to have Molson's trademark of Arctic taken off the books.

'We applied to have their trademark expunged (erased),' he said.

Chilkoot Brewing Co. Ltd. has taken the position that Molson shouldn't get to own the word 'Arctic' because as far as he can see, the brewing giant isn't using it.

'We couldn't find it on the Internet.

'They wouldn't tell us where they would use it,' Baxter said.

'From our point of view, we feel Molson should have withdrawn. I'm not sure why it doesn't.'

Baxter said he felt the brewing giant may be getting around to using the name by printing the label on a few cases of beer every few years and selling them to one of its foreign subsidiary companies.

Baxter said he can't understand how the brewing giant was able to own the term when, as far as he knows, geographical regions such as the Yukon and other terms including colours were not legally allowed to be trademarked.

'They own the word Arctic'; that's why we keep fighting,' he said. 'We're not trying to slag Molson, but this has gone on for a long time.

'It's a great David and Goliath story.'

Baxter said he's been waiting two years for his CIPO hearing on the matter. However, even if he wins at the regulator's quasi-judicial process, he believes, he'd have a long road ahead if he decides to continue with the fight.

'The appeal process involves going to federal court; that's another long process,' he said.

'We're 99 per cent sure Molson will appeal it in federal court. Chances are, we're not going to beat them.'

Baxter said in the interest of protecting his business, the Chilkoot Brewing Co. Ltd. has opted to change the name of Arctic Red to Yukon Red and trademark the new name.

'Before this gets bigger and bigger, we're going to change the name.'

Lynne Pelletier, a technical policy and examination officer with CIPO, said today Molson has owned the rights to the word 'Arctic' since May 8, 1981.

The trademark was again registered on March 15, 2001.

'(The trademark) is for Arctic and its for brewing and alcoholic beverages,' she said.

Molson also owns the rights to Arctic Cap, Arctic Bay and Arctic Wolf.

Pelletier said she doesn't have a specific timeline for when the dispute between the Chilkoot Brewing Co. Ltd. and Molson will be settled, but that each trademark and each dispute is dealt with on a case-by-case basis.

'Every case is proved on its own merit,' she said.

Pelletier said trademark holders must prove they have used their reserved names under section four of the Trademark Act. Third parties could apply to have the mark expunged under section 45 of the act.

According to section four of the Trademark Act, a trademark can be considered valid if it is used or printed in Canada.

'A trademark is deemed to be used in association with wares if, at the time of the transfer of the property in or possession of the wares, in the normal course of trade, it is marked on the wares themselves or on the packages in which they are distributed or it is in any other manner so associated with the wares that notice of the association is then given to the person to whom the property or possession is transferred,' the act states.

'A trademark is deemed to be used in association with services if it is used or displayed in the performance or advertising of those services.

'A trademark that is marked in Canada on wares or on the packages in which they are contained is, when the wares are exported from Canada, deemed to be used in Canada in association with those wares,' section four of the act states.

Section 45 of the act states the owner of a trademark must show '... whether the trademark was in use in Canada at any time during the two-year period immediately preceding the date of the notice and, if not, the date when it was last so in use and the reason for the absence of such use since that date.'

The three basic forms of trade-marks, according to CIPO, include: ordinary marks such as words or symbols; certification marks; and distinguishing guise which identifies the shaping of wares or their containers or is a mode of wrapping.

Molson officials could not be reached for comment on the situation.