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HomeMy WebLinkAboutCOD-048-09CI~i"liC1~;C0Il Leading Nes Woy REPORT CORPORATE SERVICES DEPARTMENT Meeting: Date: Report #: Subject: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE June 22, 2009 COD-048-09 File # TOTAL HOCKEY OFFICIAL MARK By-law #ac>J9-~i7 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: THAT Report COD-048-09 be received; 2. THAT the proposal dated June 8, 2009 as provided by Total Hockey Worldwide L.L.C Lakeville, MN, be accepted; and 3. THAT the attached By-law marked Schedule "A" authorizing the Mayor and Clerk to execute the necessary agreement be approved. Submitted by: ~~ Reviewed by: arie Marano, H.B.Sc., C.M.O., l~ Director of Corporate Services MM\JDB\BH ~Q-4..~Q_ -~, Franklin Wu, Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623169 REPORT NO.: COD-048-09 PAGE 2 BACKGROUND AND COMMENT 1.1 At their meeting of December 1, 2008 Council reviewed report #COD-069-08 dealing with the disposition of the Total Hockey Assets as well as the Total Hockey Trademark. A copy of the report is attached as Schedule "B" for information. 1.2 In the above noted report staff recommended that authority be granted to explore opportunities for the licencing or release of the Total Hockey Official Mark and report back to Council with a recommendation, at the appropriate time. 1.3 The purpose of this report is to provide Council with an update on the outcome of discussions with the firm Total Hockey Worldwide LLC, Lakeville, MN, who have expressed an interest in obtaining the release of the Official Mark and subsequently provided an offer; Copy attached as Schedule "B" . 2. ANALYSIS 2.1. As noted in the attached report, Clarington is not in a position to sell the Official Mark. We can licence it or we can release the mark. Licensing the mark involves a significant investment in legal fees to develop the necessary legal agreement and there is an on- going administrative element involved for both parties; i.e. on-going licence fees to be collected/paid; tracking the life cycle of the agreement and perhaps dealing with renewals should the licence be issued for a limited time period. 2.2. For the forgoing reasons Total Hockey Worldwide is not interested in licencing the Mark. Their preference is to acquire the mark outright and incorporate it into their own trade mark for registration in Canada. 3. FINANCIAL 3.1. There is little financial implication to this process. In essence Total hockey Worldwide has offered to make a payment of $3,000.00 to the Municipality of Clarington for the release of the mark and this will in turn cover some of the cost involved in having the Total Hockey Official Mark Registered. REPORT NO.: COD-048-09 PAGE3 4. CONCLUSION 4.1. Staff is recommending that the offer be accepted and that the Mayor and Clerk be authorized to acknowledge and sign the agreement as well as the notices to the Registrar of Trade-marks; draft copies attached as Schedule "C° 4.2. This report has been reviewed for recommendation by the Purchasing Manager and the appropriate department and circulated as follows: Concurrence: Director of Community Services Attachments: Attachment 1 -Schedule "A", By-law Attachment 2 -Schedule "B", Report #COD-069-08 (Addendum) less attachments Attachment 3 -Schedule "C", Total Hockey Worldwide proposal. Schedule "A" THE CORPORATION OF THE MUNICIPALITY Of CLARINGTON BY-LAW 2009- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Total Hockey Worldwide LLC., Lakeville, MN, to enter into agreement for the release of the Total hockey Official Mark. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. .THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, a contract between, Total Hockey Worldwide LLC, Lakeville, MN, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day. of , 2009. By-law read a third time and finally passed this day of , 2009. Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk Clar~gtt~n Leading ehe Way Schedule "B" REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: December 1, 2008 Report #: COD-069-08 (Addendum) File #_ By-law #. Subject: RFP2008-9, SALE OF TOTAL HOCKEY ASSETS & LICENSING OF TOTAL HOCKEY TRADE MARK Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-069-08 (addendum) be received for information; 2. THAT the Request for Proposal, RFP2008-9 process for the sale of Total Hockey Assets and lease of the Total Hockey Official Mark be cancelled and the proponents be advised accordingly; 3. THAT the artifacts be stored and staff review the options with respect to the disposition of the artifacts and report back to Council with a recommendation, at the appropriate time; 4. THAT the requirements of the Purchasing By-law be waived; and 5. THAT staff be authorized to explore opportunities for the licensing or release of the Total Hockey Official Mark and report back to Council with a recommendation, at the appropriate time Submitted by: e ~riGGL~~ Reviewed by: ~ "" _ mo, H.B.Sc., C.M.O., Corporate Services rranKUn wu, Chief Administrative Officer of Community Services MM1JD61km CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: COD-069-08 (addendum) P~XC,"E Ze .,g„ BACKGROUND AND COMMENT 1.1 At the General Purpose and Administration Committee meeting of November 17, 2008, Report COD-069-08 (copy attached as Schedule "A") was referred back to Corporate Services and Community Services staff and the Chief Administrative Officer for a report providing a response to the following: • Why the collection is worth less now than when it was originally purchased; • Why the Municipality can not sell the Trade Mark; • A complete update of the collection inventory; • An apples to apples comparison of the inventory appraisals. 1.2 The recommendation as outlined in the report is to continue with only one amendment to the reference of the Trade Mark, which is now referred to as the Total Hockey Official Mark. 2. ANALYSIS 2.1. The following is provided for information and in response to the above noted request for information: 2.1.1 Why the collection is worth less now than when it was originally purchased? This question is difficult to answer because we are dealing with items whose value is driven by the market or demand. We have an appraisal that estimates the value of the artifacts to be in the area of $51,800 whereas we have a bid that suggests a value of $16,437.00. The appraiser provided an estimate of what he feels the artifacts are worth on the market. The bidders in this instance choose to place a value on the artifacts much lower than that of the appraisal simply because that is what the bidder felt they were worth to him. This approach or philosophy is confirmed by comments made during the viewing which indicated that the bidder was not interested in all of the items, for example lots 2, 7, 12, 15 and 17 to 21, but would provide a token bid. If he was successful, that would be fine; if not then this was not a concern. It is possible that the high bidder was planning to break up the lots and resell some or all of the items. If this was the intent his approach would be to buy as low as possible hoping to make a profit on the sale. Please note that during a discussion with the bidder he did indicate that he felt the overall value was close to the appraisal, however, this is list price. REPORT NO.: COD-069-08 (addendum) PAGE 3e "B~, It is unfortunate that others who expressed interest in the offering were not in a position to bid. For example there was a museum that obtained the RFP document and they expressed interest but later learned that they could not obtain the funding necessary to make a bid submission. In addition to the above, it is possible that the down turn in the economy may have influenced the decision of some not to bid. Although it is not possible to not respond directly to the Committee's request, the above explanation offers suggestions as to what may have influenced the response. 2.1.2. Why the Municipality can not sell the Trade Mark? When the municipality registered the Total Hockey mark it was registered under the legislation covering intellectual property. As such, when a public body registers a mark it is designated an Official Mark as apposed to a trade mark that we are familiar with and registered by the private sector. When a public authority registers an Official Mark it cannot be sold, however it can be offered for use by another party and the Municipality may charge a fee but the municipality retains ownership. The other option is to withdraw the official mark so that a new applicant can apply to Trade Mark the name Total Hockey. Once again a fee can be applied to this withdrawal. A copy of the letter provided by the firm of Thomson Law Firm, Barrister, Solicitor and Trade Mark Agent that speaks to this issue is attached as Schedule "B". 2.1.3 A complete inventory of the Total Hockey assets (Schedule "C") has been provided for Council's review. The inventory is separated into 4 sections: • Appendix 1 -Transferred Assets from Brian McFarlane • Appendix 2 -Loaned Assets from Brian McFarlane • Appendix 3 -Items Donated (independent of Brian McFarlane) • Appendix 4 -Items Purchased (independent of Brian McFarlane) REPORT NO.: COD-069-OS (addendum) Schedule "B" PAGE4 2.1.4 A comparison of the 1998 & 2008 appraisals has been completed and is attached as Schedule "D". While it is not possible to make a direct comparison on each item, wherever possible staff have made those comparisons in order identify the major differences in value. 2.2. In addition to the information requested and provided above, attached to this report is the following additional documentation: • Schedule "E" -Brian McFarlane Museum Appraisal, December 8, 1998 • Schedule "F" -Total Hockey Collection Appraisal, June 5, 2008 • Schedule "G" -Agreement of Purchase and Sale, October 29, 2003 • Schedule "H" -Brian McFarlane Hockey Museum, List of Inventory, July 2003 3. CONCLUSION 3.1. The foregoing report responds to the areas of concern raised at the GP&A Meeting of November 17"'. The possible reasons for the disparity in the appraisal versus the actual bids have been provided in addition to the "apples to apples comparison" for the inventory appraisals. It is respectfully recommended that report be received for information and the recommendations as proposed in Report COD-069-08 as amended (Trade Mark vs Official Mark) be approved. 3.2. Subsequent to the closing of the RFP, there have been two (2) contacts expressing an interest in the artifacts. At the appropriated time staff will report back to Council should any future expression or interest dictate either a re-issue of the RFP or alternative options for disposal of the artifacts, that may be in the best interest of the Municipality. REPORT NO.: COD-069-08 (addendum) Attachments: Schedule "A" -Report COD-069-OS Schedule "B" -Letter from the Thomson Law Firm Schedule "C" -Total Hockey Inventory Schedule "D' - 1998/2008 Appraisal Comparison Schedule "E" -Brian McFarlane Hockey Museum Appraisal, December 8, 1998 Schedule "F" -Total Hockey Collection Appraisal, June 5, 2008 Schedule "G" -Agreement of Purchase and Sale, October 29, 2003 Schedule "H" -Brian McFarlane Hockey Museum, List of Inventory, July 2003 PAGE 6e ~~8,~ TOTAL HOCKEY TRAINING SYSTEMS June S, 2009 PRIVATE AN'D CONFIDENTIAL Sent via email The Corporation of the Municipality of Clarington 40 Temperance Street Bowmanville, ON L1C 3A6 Attention:. Jerry Barber Dear Sirs/Mesdames: Re: Section 9(1)(n)(iii) Official Marks Recorded in the name of The Corporation of Municipality of Clarington: 1. TOTAL HOCKEY, File No. 917,597 2. TOTAL HOCKEY & Design, File No. 917,596 Schedule "C" We write further to our discussions regarding your official. mazks noted above. You have advised that you have abandoned use of these official marks and have no objection to our use and registration of our own trade-mark POWEREDBY TOTAL HOCKEY, in Canada. Accordingly, in consideration of our payment to you of $ 3,000, you have agreed to record your withdrawal of the above noted official marks with the Canadian Intellectual Property Office. We enclose two forms of letters addressed to the Registrar of Trade-marks for use for this purpose. Please transfer the forms to your official letterhead and have them signed by an officer of your organization. Please then return the signed letters to us and we will arrange to have our Canadian attorneys fire the withdrawal letters with the Registrar of Trade-marks. Upon public notice being given of the withdrawal of your official marks, we will provide you with the agreed payment of $ 3,000. We ask that you please sign the enclosed acknowledgement copy of this letter, confirming your consent to our use and registration in Canada of our mark POWERED BY TOTAL HOCKEY and the other terms of our agreement as set out in this letter, and return it to us together with the two withdrawal letters. Schedule "C" Page 2 We trust you will find the foregoing to be in order, but should you have any questions please do not hesitate to contact us. Yours truly, TOTAL HOCKEY WORLDWIDE Li.c Per: ~°--- er n CEO Enclosures: 1. Acknowledgement copy 2. Withdrawal letters (2) Acknowledged and agreed this day of ,2009 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Per: Name: Title: ~,iu~nui Schedule "C" (TO BE PRINTED ON THE LETTERHEAD OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON) Registrar of Trade-marks Canadian Intellectual Property Office Place du Portage I 50 Victoria Street, Room C-114 Gatineau QC K1A OC9 Dear Sirs/Mesdames: Re: Section 9 Official Mark Withdrawal Notice Official Mark: TOTAL HOCKEY File No.: 917,597 Owner: The Corporation of the Municipality of Clarington We hereby request withdrawal of the above noted official mark, published under sub-paragraph 9(1)(n)(iii) of the Trade-marks Act in the Trade-marks Journal of July 12, 2006. Yours truly, THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Per: 3515043.1 Schedule "C" (TO BE PRINTED ON THE LETTERHEAD OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON) Registrar of Trade-marks Canadian Intellectual Property Office Place du Portage I 50 Victoria Street, Room C-114 Gatineau QC K1A OC9 Dear Sirs/Mesdames: Re: Section 9 Official Mark Withdrawal Notice We hereby request withdrawal of the above noted official mark, published under sub-paragraph 9(1)(n)(iii) of the Trade-marks Act in the Trade-marks Journal of July 12, 2006. Yours truly, THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Per: 3527935.1