The Toronto community organization that founded Caribana has settled an $800,000 trademark infringement lawsuit against Scotiabank and the Festival Management Committee (FMC), which now runs the event, for an undisclosed amount.
The Caribana Arts Group launched the suit in 2011, alleging the bank and FMC violated the trademark when it “named and advertised the festival as the ‘Scotiabank Caribana Festival,’ ” beginning in 2008.
Despite repeated requests by the group, according to a statement of claim, the committee continued to use the trademarked name even after then-chair Henry Gomez hand-delivered a cease and desist order to FMC chair Joe Halstead at a Royal Ontario Museum event.
The festival’s name wasn’t changed to the Scotiabank Caribbean Carnival Toronto until after the group launched the suit against the bank and FMC, which runs the festival with an operating grant from the city.
Caribana Arts Group (CAG) chair Knia Singh said Wednesday the legal action was one of the “most difficult” decisions ever made by his organization, in part because the lawsuit included founder Charles Roach, who passed away in 2012.
The suit alleged the arts group tried unsuccessfully to reach a licensing agreement, but that in 2009, Roach, “ostensibly acting as chair and on behalf of CAG,” entered into a secret agreement with FMC to use the Caribana name.
The statement of claim said the CAG board didn’t know of the agreement and it was only uncovered after the board hired a lawyer to advise them on the trademark issue.
The $100,000 claim against Roach was settled with his estate in December.
“The board and the community weren’t happy because he was such a staple in our community,” said Singh. “We were trying to solve it. We were very upset about it, but in keeping with responsible governance we had no choice to launch the action.”
The Caribbean carnival is one of Toronto’s largest festivals, generating $438 million of economic activity annually, according to a 2010 Ryerson University study.
The festival was founded in 1967 by volunteers who later formed the Caribbean Cultural Committee and registered the Caribana name in 1977. The committee changed its name to the Caribana Arts Group in 2005.
The group lost control of the festival after failing to complete an audit in 2005 and after a second audit in 2006 showed misappropriated funds, said Singh.
Halstead, a former City of Toronto commissioner of economic development, culture and tourism, was appointed chair of FMC.
The arts group believed the arrangement would only last a year and community members say they were devastated by the loss of Caribana.
“When the control over a festival of this nature is taken away from its creators and facilitators after it has given so much culturally, economically and socially, all that can be left is disappointment, hurt and disbelief,” said Singh.
He said the arts group would like to run the festival again.
Next week, the city’s economic development committee will consider a $560,000 operating grant for the Festival Management Committee. The carnival is also funded by the province and federal government.
Scotiabank wasn’t aware the settlement was being made public Wednesday and a bank spokesperson said a statement wasn’t available.
