{"id":24565,"date":"2025-05-13T17:32:05","date_gmt":"2025-05-13T17:32:05","guid":{"rendered":"https:\/\/cpata-cabamc.ca\/?page_id=24565"},"modified":"2025-05-13T17:32:05","modified_gmt":"2025-05-13T17:32:05","slug":"conflicts-of-interest-part-2","status":"publish","type":"page","link":"https:\/\/cpata-cabamc.ca\/en\/your-practice\/conflicts-of-interest-part-2\/","title":{"rendered":"Conflicts of Interest – Part 2"},"content":{"rendered":"\t\t
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This is the second of two articles highlighting<\/span> ethical considerations arising from <\/span>interesting conflicts of interest questions that have come through our ethics inquiry process.<\/span> The first article <\/span>in this sh<\/span>ort<\/span> series <\/span>appeared in the April newsletter<\/a><\/span>.<\/span><\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Scenario <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Who is the \u2018client\u2019 for p<\/span>urposes of an agent\u2019s ethical duties<\/span> when a firm accepts incoming trademark work from a foreign agent acting on behalf of a foreign client?<\/span> Is the client the foreign <\/span><\/span>client<\/span><\/span> or the foreign <\/span><\/span>agent<\/span><\/span>?\u00a0<\/span> Agency work in Canada very often involves retainers of th<\/span>is<\/span> nature <\/span>where<\/span> a foreign agent (FA) acting on behalf of a foreign client (FC)<\/span> seek<\/span>s<\/span> assistance<\/span> from a Canadian agent (CA) to apply for and\/or prosecute an application in Canada.<\/span> Conflicts of different natures can arise in some circumstances.<\/span><\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Code of Conduct <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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As always, we start our conflicts analysis by looking at the guidance in the Code of Conduct. For this hypothetical scenario, we start with the <\/span>definition of \u2018client\u2019<\/span><\/b> in the Definitions Schedule:<\/span>\u00a0<\/span><\/p>

\u2018client\u2019 means a person who consults an agent and on whose behalf the agent <\/span> provides or agrees to provide representation under section 27 or section 30 of the <\/span> [CPATA] Act or who, having consulted an agent, reasonably concludes that the <\/span> agent has agreed to provide representation on their behalf.\u00a0 It includes a client of a <\/span> firm of which the agent is a partner or associate, whether or not the agent handles <\/span> the client\u2019s work.<\/span>\u00a0<\/span><\/p>

It is also helpful to look to <\/span>Part 3 Conflicts<\/span><\/b>, and the Principle which provides that, \u201cIn each matter, an agent\u2019s judgment and loyalty to the client\u2019s interest must be free from compromising influences.\u201d<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Analysis <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Based on the Code definition of \u2018client\u2019, a CA owes duties to <\/span>both<\/span><\/i><\/b> the FA and the FC.<\/span>\u00a0<\/span><\/p>

Both the FA and the CA are expected to act in the best interests of the FC.\u00a0 For the FA, they have a direct or bright line duty of loyalty and other ethical duties to the FC.\u00a0 The CA has a direct line of duty to the FA and, in some cases, a \u2018dotted line\u2019 of duty to the FC, which line may become direct or solid depending on the specific circumstances of the matter.<\/span>\u00a0<\/span><\/p>

Let\u2019s consider a few scenarios to help understand how specific circumstances can impact the analysis:<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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  1. A CA accepts a retainer from a FA to provide prosecution services for a FC.\u00a0 The <\/span>FA <\/span><\/i> then ceases to acknowledge communications from the CA<\/span><\/i>. While it would normally<\/span> not be appropriate for the CA to communicate directly with the FC because the <\/span> direct line relationship is between the CA and the FA, direct communication <\/span> between the CA and the FC becomes necessary in order to protect the FC\u2019s <\/span> interests.\u00a0 The CA\u2019s duty to protect the FC\u2019s interests becomes a priority in this <\/span> scenario.<\/span><\/li>
  2. A CA accepts a retainer from a FA in which the FA agrees to pay the CA\u2019s fees and to <\/span> then charge these fees back to the client as a disbursement.\u00a0 The <\/span>FC refuses to pay <\/span><\/i> their FA.\u00a0<\/span><\/i> If the CA is not paid, their recourse may depend on their contractual <\/span> agreement with the FA.\u00a0 In some cases, the contractual recourse may be against the <\/span> FA, with no recourse to the FC.\u00a0 The FA then has to pursue payment from their FC.<\/span><\/li>
  3. A FC\u2019s trademark application in Canada is unsuccessful and they allege this was <\/span> due to a <\/span>lack of competence on the part of both the FA and the CA<\/span><\/i>.\u00a0 This client has <\/span> the right to expect competent and ethical service from both agents and can <\/span> therefore file conduct complaints in both Canada and the jurisdiction of their FA.\u00a0 <\/span> Both <\/span><\/i>agents owed an ethical duty of care to the FC.<\/span><\/li>
  4. A CA is retained and reaches the conclusion that a trademark<\/span> application is unlikely <\/span><\/i> to be successful in Canada.<\/span><\/i> The CA has a duty to communicate that opinion to the <\/span> FA and is entitled to reasonably assume that the FA will accurately communicate <\/span> this opinion to the FC.\u00a0 In this case, the CA is acting in the best interests of the FC <\/span> through <\/span><\/i>the FA.<\/span><\/li>
  5. A FA seeks to retain a CA on behalf of their FC.\u00a0 If the CA is aware of a <\/span>conflict of <\/span><\/i> interest<\/span><\/i> with respect to <\/span>either<\/span><\/i> the FA or the FC, the CA will need to consider whether <\/span> they will be able to accept the retainer.<\/span><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Conclusion <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    What the scenarios above illustrate is that the answer to \u2018who is my client\u2019 is very contextual, based on the definition of \u2018client\u2019 in the Code, and in most respects will include ethical duties to <\/span>both<\/span><\/i> the FA and the FC.\u00a0 The answer may vary if considered through the lens of agency or contract law, but for purposes of this analysis the focus is on applying an ethical lens and understanding the nature of the duties owed to both parties, which will also depend on the circumstances of each matter and the nature of the retainer.<\/span>\u00a0<\/span><\/p>

    As always, agents are expected to exercise their own professional judgment in every circumstance based on all relevant facts and considerations and should not rely solely on this guidance from CPATA. We welcome all inquiries from agents about your ethical and professional responsibilities<\/span>.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    \n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tContact CPATA<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    This is the second of two articles highlighting ethical considerations arising from interesting conflicts of<\/p>\n","protected":false},"author":7,"featured_media":0,"parent":5883,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"folder":[],"class_list":["post-24565","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\nConflicts of Interest - 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