Take a look at this section of the Trade-marks Act:
9. (1) No person shall adopt in connection with a business, as a trade-mark or otherwise, any mark consisting of, or so nearly resembling as to be likely to be mistaken for,...It's probably debatable whether Flaherty's drive for re-election falls into the definition of "a business" under this section. (Though I would hope political parties' and candidates' activities would be included in the definition, lest a campaign turn into a battle of duelling government endorsements.) But aside from that question, it seems that it would be a violation of the Trade-marks Act to pretend that the Cons' own press releases should be considered the "Government of Canada News Updates".
(d) any word or symbol likely to lead to the belief that the wares or services in association with which it is used have received, or are produced, sold or performed under, royal, vice-regal or governmental patronage, approval or authority;
The problem is that however appropriate it would be to test the reach of the provision, it's highly unlikely that we'll ever get to find out whether Flaherty is indeed in violation. After all, the Cons are in control of the means to decide whether or not to pursue anybody for violating the government's rights under the Trade-marks Act. Which conveniently means that as long as they're in power and have no scruples about what they label as belonging to the "Government of Canada", they can hijack the phrase with impunity to their partisan activities. (And it'll be worth keeping an eye out to see whether Con-friendly corporate groups also get similar favourable treatment.)
Of course, it shouldn't be any surprise for the Cons to put partisan ends ahead of the integrity of Canadian government. But this could be only the tip of the iceberg of how the Cons may be willing to selectively enforce the law for their own benefit...and it'll be important to uncover as much of that iceberg as possible before Canada next goes to the polls.
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