Ghost mark

Ghost marks are trade marks which closely simulate ordinary words or phrases used in the course of trade, and which are not intended to be used as genuine trade marks.

In the case of Imperial Group v. Philip Morris 1982 FSR 72, the plaintiff endeavored 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. 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 monopoly over the unregisterable mark "MERIT".