The issue came up during a wide-ranging meeting between high-level trade officials from both countries in Toronto on Wednesday.
A summary of the meeting said an advisor for the United States Trade Representative used the gathering to share “concerns about trademark provisions of Quebec’s Bill 96 and their potential implications for U.S. businesses, including small and medium-sized enterprises.”
Signs that display a trademark or company name would also have to include at least some French terms, such as “a description of the products or services concerned, or a slogan,” the draft regulation states.
It proposes a June 2025 deadline for businesses to comply with the signage rules. The Office of the U.S. Trade Representative has not detailed its concerns and did not respond to questions from The Canadian Press on Jan. 26.
“We have to understand that there is concern on the American side, and we have to address this fear,” he said in an interview.
Eliane Ellbogen, a Montreal intellectual property lawyer with Fasken, said the rules on commercial signage have been a source of concern in the business community.
“For the past year and a half, we’ve been contacted almost every day with questions, especially from small and medium-sized businesses,” she said. “We’re faced with a lot of incomprehension, honestly, and surprise, in relation to criteria that to them seem ultra-demanding.”
Ms. Ellbogen said the proposed regulation could entail major expenses and administrative steps for businesses that will have to modify their signs or trademarks.
Some businesses have questioned that estimate, however.
“What we’re told is that it could be around $50,000 to $100,000 per sign,” Mr. Ellbogen said. “For a retailer with around ten branches, it could represent a cost of a million dollars.”
Retailers consider the June 2025 deadline “very tight,” Mr. Rochette said.
“Two years ago, (officials) were saying they'd have three years to adapt, which isn’t quite true,” he said. “The countdown has already begun, but we don’t yet know the rules of the game.”
In the meantime, merchants can’t take any costly preparatory steps until they have confirmation that the regulation will be adopted as proposed. It’s undergoing consultations until the end of February.
“Merchants have to wait for the final draft to be sure they’re ... respecting the rules,” Mr. Rochette said.