Ghost marks are trade marks which closely simulate ordinary words or phrases used in the course of trade

Trade

Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...

, and which are not intended to be used as genuine trade marks.

In the case of Imperial Group v. Philip Morris

Imperial Group v. Philip Morris

In Imperial Group v. Philip Morris, 1982 FSR 72, the plaintiff endeavoured to register the trade mark "MERIT" for cigarette products, but was unable to do so on the grounds that the trade mark was too descriptive...

1982 FSR 72, the plaintiff

Plaintiff

A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...

 endeavored to register the trade mark "MERIT" for cigarette

Cigarette

A cigarette is a small roll of finely cut tobacco leaves wrapped in a cylinder of thin paper for smoking. The cigarette is ignited at one end and allowed to smoulder; its smoke is inhaled from the other end, which is held in or to the mouth and in some cases a cigarette holder may be used as well...

 products, but was unable to do so on the grounds that the trade mark was too descriptive. Instead, it registered the mark "NERIT", without any intention of using the mark, but in order to prevent other traders from using the mark "MERIT" because it would be considered too similar to the registered mark "NERIT". The intention was the obtain a de facto

De facto

De facto is a Latin expression that means "concerning fact." In law, it often means "in practice but not necessarily ordained by law" or "in practice or actuality, but not officially established." It is commonly used in contrast to de jure when referring to matters of law, governance, or...

 monopoly

Monopoly

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 over the unregisterable mark "MERIT".

The defendant

Defendant

A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...

 began using the mark "MERIT" for cigarettes and was sued by the plaintiff for infringing its mark "NERIT".

The court

Court

A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...

 struck down the registration for "NERIT" on the basis that the plaintiff had no genuine intention to use the mark (despite some "trivial and insubstantial" efforts at launching a NERIT-branded product).

Prior to the decision in Imperial Group, ghost marks were a commonplace tactical procedure for trade mark owners. Ghost marks are now rarely filed following this decision. A somewhat similar protection to that offered by ghost marks are available through the use of defensive trade marks.