Quarterly bulletin no. 2/2014 (14) Trade marks and unfair competition Introduction It is my pleasure to present our readers with our latest quarterly bulletin describing the most important events in trade mark and broadly understood competition law. I am even more pleased that, in addition to our French co-authors, we have been joined by a colleague from Australia. We are thus able to inform you of IP news from this continent. Trade marks and brands have an international character; in fact, it would be difficult to think of any other area of law in which the international element is just as important; events in other remote jurisdictions may have a direct impact on the legal situation of the rightholder. Chris Round of the K&L Gates Melbourne office has prepared some material on the changes in the opposition procedures in Australian legal system. In Europe some major changes are also underway – ongoing work on the reform of trade mark law. The planned withdrawal from examining the relative grounds of registration will cause a material revolution in the system of trade mark protection. This will require increased activity of the rightholder entitled to trade marks, since the burden of eliminating trade marks not meeting the relative grounds will be shifted to them. In jurisdictions where the authorities dealing with intellectual property so far have been studying the full range of negative prerequisites, rightholders may experience a revolution. They will undoubtedly be forced to adapt to the new system. In France, a new type of exclusive right has appeared, namely, the right to a geographical indication of industrial and handicrafts products. As we know, products from certain places and regions may enjoy renown and recognition among consumers. Traditionally, these are food or alcoholic drinks. This catalogue has been expanded in the French legal system by granting legal protection to products of material culture of the various geographical regions. On behalf of the all co-authors, I wish you pleasant reading. As always, I encourage you to share your opinions and insights with us, which will help to increase the quality of the bulletin. Oskar Tułodziecki K&L Gates Jamka sp.k. Al. Jana Pawła II 25 00-854 Warszawa, Polska www.klgates.com T: +48 22 653 4200 F: +48 22 653 4250 Contents Legislative initiatives EU – Changes in trade mark protection in the European Union ..................................4 PL – Uniform standards for the protection of trade secrets: Draft position of the Republic of Poland.....................................................................4 Case-Law EU – Invalidation of a trade mark due to earlier copyright: ruling of the EU Court of Justice .................................................................................................................6 EU – Prior international registration of a trade mark does not provide a basis for the registration of a Community trade mark: Ruling of the EU General Court .........6 EU – TEEN VOGUE is misleading: Ruling of the EU General Court .............................8 PL – Is the advertising slogan “LODY PRAWDZIWIE DOMOWE” subject to protection?: Ruling of the Supreme Administrative Court ...................................... 9 PL – Order to return marketing charges: Ruling of the Court of Appeal in Gdansk ................................................................................................................9 Other issues FR – Creation of a new industrial property right in France: “The geographical indication of industrial and handicraft products”......................................................11 AU – Review of changes in opposition procedures in Australia .................................13 Legislative initiatives EU – Changes in trade mark protection in the European Union Work is under way on an amendment of Directive 2008/95/EC to approximate the laws of the Member States relating to trade marks and Council Regulation (EC) No. 207/2009 on the Community trade mark closer into line. In legislative resolutions of 25 February 2014, the European Parliament presented amended drafts of the Directive and the Regulation. One of the most important changes planned provides for a solution under which domestic trade mark offices considering cases of trade mark registration would confine themselves to investigating the absolute grounds for protection of a mark. They would no longer consider relative grounds, that is, those referring to the existence of earlier similar or identical trade marks belonging to other entities, which could constitute an obstacle to the registration of a given mark. The draft directive also foresees the establishment of administrative procedures concerning the invalidation of protection rights to trade marks in those countries in which such procedures are not in force. The provisions of the Industrial Property Law provide an administrative legal procedure for the invalidation of trade marks in dispute proceedings before the Polish Patent Office, and so that change should not cause any modification of the current system for invalidation in Poland. The fate of the graphic criterion for the representativeness of a designation as part of the definition of a trade mark hangs in the balance. That criterion will not disappear altogether, but will be replaced by more detailed guidelines resulting from a ruling of 4 Trade marks and unfair competition the Court of Justice in the case Sieckmann of 12 December 2002 (case file No. C-273/00). The ruling of the ECJ in the Sieckmann case is of key importance to forming a practical definition of a trade mark and the requirement of graphic representativeness. The presentation of a mark will not be “graphic”, as it has been, but must be clear, precise, self-contained, easily accessible, intelligible, durable and objective. The presentation of a mark must be precise and clear enough that it is understandable to any person having an interest in becoming acquainted with the registration of marks, including competitors. This amendment will concern Community and domestic trade mark applications. Source: www.europarl.europa.eu PL – Uniform standards for the protection of trade secrets: Draft position of the Republic of Poland In the last issue of the bulletin we reported on a draft Directive of the European Parliament and of the Council presented by the European Commission on the protection of classified know-how and trade information (trade secrets) against their being unlawfully acquired, used or disclosed. Under the draft directive, the plan is to introduce uniform standards for the protection of trade secrets in all Member States. Uniform legal means should provide businesses with effective legal protection for their trade secrets throughout the EU. The government of the Republic of Poland has taken the position that this initiative aimed at unifying the measures used to protect trade secrets should certainly be supported, since differences among Member States may lead to the interests of businesses not being safeguarded to the same degree, which could in turn lead to a disturbance of competition on the internal market. The assumptions presented by the European Commission, which set out the need to protect the holder of a trade secret against violations where the secret is not protected by the provisions of intellectual property law and the business cannot make direct use of the protection for intellectual property rights provided by Directive 2004/48, have been wholly approved. Separate protection regulations, therefore, are necessary in just this scope. With strong support from the Polish government, the draft contains both temporary and remedial means, which are only in the form of examples, giving Member States the regulatory freedom they need to adapt the changes to the legal system in force. One proposal by the European Commission was met with criticism, however – that of limiting an opposing party’s access to evidence and its participation in hearings during court proceedings concerning cases of an infringement of trade secrets. In this respect, in the opinion of the Polish government, that regulation stands in clear contradiction of Article 6 of the European Convention on Human Rights, which introduces the principle of due process. No party to a proceeding should be deprived of its right to a defense. Also not deemed worthy of support, for being much too short, is a restriction proposed in the directive of a maximum of two years in which the holder of a trade secret is entitled to bring a claim. In the opinion of the Polish government a longer limitation period should apply. The most important effect of the acceptance of the proposed directive, in light of the position presented, will be to ensure that trade secrets are effectively protected, which will translate into businesses becoming more competitive. This will undoubtedly lead to an expansion of the range of products and services, or to a reduction in prices, from which consumers themselves will indirectly benefit. Source: www.adwokatura.pl 2/2014 5 Case-Law EU – Invalidation of a trade mark due to earlier copyright: ruling of the EU Court of Justice The Court also referred to a ruling of the Cassation Court of 14 June 2007, although it did not previously grant the parties an opportunity to present their remarks concerning that ruling. Nor was there any written indication from the Court as to what parties were called on to present a position with regard to Article 2704 CC. Nor had that provision been analyzed previously in the contested OHIM decision. Parties have the right to familiarize themselves with charges raised ex officio by a Court that the Court intends to base its ruling on, and to respond to those charges. Thus rules the Court of Justice, setting aside a ruling of the EU General Court in the case of the National Lottery Commission with its registered office in London (NLC) v. OHIM (C-530/12P). The case concerned the invalidation of a trade mark due to the existence under Italian law of an earlier copyright to an almost identical mark. NLC obtained a registration for the following graphic Community trade mark (hereinafter the “contested trade mark”) on 2 October 2007. On 20 November 2007, Mediatek Italia Srl and Giuseppe De Gregorio filed an application with OHIM, on the basis of Article 52 par. 2 letter c) of Regulation No. 40/94 on the Community trade mark, for a declaration that the contested trade mark was invalid by virtue of the existence of an earlier copyright owned by G. De Gregorio in the following graphic mark (hereinafter the “mano portafortuna”): 6 Trade marks and unfair competition In a decision of 16 July 2009, the Cancellation Division of the OHIM ruled in favor of that motion. NLC lodged an appeal against that decision, but this was dismissed by the OHIM First Board of Appeal because, in the Board’s view, the parties moving for invalidation of the right to the mark had presented evidence of the creation of the work and had shown that they held copyright over that work by providing a photocopy of an agreement in written as of 16 September 1986 (“the 1986 agreement”) in which the author of the mano portafortuna declared that he assigned the right to reproduce and use the work reproduced to one of those parties. The Board of Appeal did not agree with NLC that the agreement is improper, in particular, that it refers to 70-year copyright protection when such protection was introduced only in 1996, and that the postal stamp is from a day falling on a Sunday, when post offices are not open. NLC brought an action for annulment of the contested decision. The Court referred to the provisions of Italian law, including Article 2704 of the Italian Civil Code, and to Italian case law of the Cassation Court, in according with which NLC had the right to present evidence that the 1986 agreement was in fact drawn up on a date other than that which appears on the postal stamp, without the necessity of initiating a proceeding on establishing fraud. The Court of Justice set aside the ruling of the EU General Court, stating that the Court had violated the principle of contradictoriness by not allowing the parties to address certain elements of Italian law raised ex officio by the Court. The Court of Justice held that the state of proceedings did not allow a ruling to be handed down, and referred the case back to the General Court for a ruling on the merits of the acion. Source: www.curia.europa.eu EU – Prior international registration of a trade mark does not provide a basis for the registration of a Community trade mark: Ruling of the EU General Court In March 2014, the EU General Court issued a ruling in case T-291/12 in which Deutsche Bank AG brought an action against a decision of the OHIM Fourth Board of Appeal of 24 April 2014 concerning an application for registration of the word trade mark “PASSION TO PERFORM”. In January 2011, the World Intellectual Property Organization (WIPO) registered the above mark internationally for use within the EU. The OHIM was notified of the registration. The mark was designated for services from classes 35, 36, 38, 41 and 42 of the Nice Classification. A month after receipt of the notification, the OHIM representative conducting an analysis of the grounds for the registration of the mark informed Deutsche Bank AG about its reservations concerning the registration, based on the lack of distinctive character of the mark. The bank nevertheless decided to continue with its application, for which the OHIM eventually refused to grant protection. Deutsche Bank AG filed a notice of appeal with OHIM, but the Fourth Board of Appeal did not agree with the bank’s opinion, and upheld the view that the mark “PASSION TO PERFORM” is totally devoid of distinctive character. The decision of the OHIM Fourth Board of Appeal was based on the premise that, for an advertising slogan to be registered as a trade mark, it must be associated by the relevant group of consumers with the specific business using that slogan on its goods or services. The relevant consumer group in this case is customers in Great Britain and Ireland. The level of attention of those consumers, however, is rated as low in the case where a mark is only of the promotional nature. The OHIM also found that neither the meaning of the individual elements of the mark nor the phrase they comprise meets the requirement of originality; they merely assure customers of Deutsche Bank AG that the bank will perform its services with passion. Additionally, the Fourth Board of Appeal emphasized that a basis for registering a Community trade mark cannot be provided by the earlier registration of the same or similar marks by domestic trade mark offices. In summarizing its decision, the OHIM stated that the mark in question would be perceived by the relevant consumer group only as a phrase in praise of the bank’s services, and so does not serve to distinguish the services offered in accordance with the requirements of EU regulations. Deutsche Bank AG accused the OHIM of applying too strict criteria when evaluating the distinctiveness of the advertising slogan and of not analyzing the specific market situation concerning the selected services. The OHIM rejected those charges, emphasizing that the distinctiveness of a given mark should indicate the origin of the services it identifies and distinguish those services from those provided by other entities on the market. The Court emphasized that, while an advertising slogan need not meet certain requirements such as being fantastic in nature or introducing an element of surprise in order to attain a minimal level of distinctiveness, it should indicate the origin of a given service, and not only act as a promotional slogan. In the case in question, the mark “PASSION TO PERFORM” did not fulfill that basic task. A further charge of Deutsche Bank AG was that the OHIM did not properly assess that the mark does not indicate the origin of the services under consideration. In support of that charge, the bank pointed to an error in the evaluation of the level of attention of the target consumer group, and to a failure to take account of the multiple meanings of the mark in question, its originality, and the prior registration of the mark in other countries. In addition, the applicant claimed there had been a failure to uphold the principle of equality by having registered similar trade marks for the benefit of other entities. The Court ruled that the accusation of an erroneous assessment of the level of attention of the relevant consumer group was groundless, repeating after the OHIM that a trade mark that is promotional in nature causes a low level of attention on the consumers. Even if the relevant consumer group pays more attention to one type of services provided, this does not change the general conclusion in this regard. In its analysis of the advertising slogan, the OHIM found that it consists of a verb and a noun in English which, when combined, create a clear message. There is no need to evaluate the meanings of the individual words comprising the mark because, in line with existing case law, the average consumer will perceive the mark as a whole. The Court, therefore, rejected that argument of the applicant as well. The next argument raised in favor of the registration of the mark was its alleged originality. Here as well, the Court concurred with the opinion of the OHIM Fourth Board of Appeal that the mark consists of two popular words written with a capital “P”, forming the equivalent of a sentence consisting of a word referring to an emotion and a word referring to the intellect, and in the long run it constitutes only a simple, grammatically correct message in English. For these reasons as well, the advertising slogan under consideration is not distinctive. Deutsche Bank AG also pointed to other existing registrations of the mark in a number of English-speaking countries. The Court agreed with the OHIM that existing identical or similar registrations at the domestic level in no way constitute a basis for registering a Community trade mark that is devoid of distinctive character. The OHIM is guided by 2/2014 7 an independent legal regime created by the EU. Neither the OHIM, therefore, nor any EU court is in any way bound by decisions made by Member States or third states. Nor did the Court agree applicants had been treated unequally in connection with the registration of a similar trade mark, “PASS ON YOUR PASSION”. The Court agreed with the OHIM that the fact that a similar mark was registered does not provide a basis for the registration of a mark that is devoid of distinctive character. Additionally, every case is treated individually and each registration is preceded by an in-depth analysis. In the case of the advertising slogan ‘PASSION TO PERFORM”, no basis was found for the registration of a Community trade mark. Source: www.curia.europa.eu EU – TEEN VOGUE is misleading: Ruling of the EU General Court On 31 October 2003, the plaintiff company Advance Magazine Publishers, Inc. filed with OHIM an application for registration of a Community trade mark for the word designation “TEEN VOGUE” for goods such as clothing, footwear, head coverings and associated accessories. The company Nanso Group Oy, acting as an intervener, filed a notice of opposition to the registration of the above mark for those goods. The opposition was based on the prior registration of the Swedish word trade mark “VOGUE”, the Swedish graphic trade mark: 8 Trade marks and unfair competition a registered Finnish word trade mark, “VOGUE”, and a registered trade name “VO Gue”. In its opposition, Nanso Group Oy invoked Article 8 par. 1 letter b) of Regulation No. 40/94 (currently Article 8 par. 1 letter b) of Regulation No. 207/2009), pursuant to which “…a submitted trade mark shall not be registered if, because it is identical or similar to an earlier trade mark, or the goods or services it refers to are identical or similar, there exists a likelihood of public opinion being misled within the territory in which the earlier mark is protected; the likelihood of consumers being misled also concerns the likelihood of an association being made with the earlier trade mark”. The company Advance Magazine Publisher Inc. appealed against the opposition upheld by the Objections Department of the OHIM, but that appeal was dismissed by the OHIM Fourth Board of Appeal. The Board held that the likelihood of consumers being misled could not be ruled out because of the identity or similarity of the goods bearing the trade mark, and because of the average level of similarity between the designations concerned. Moreover, the Board found that the use of the earlier trade mark “VOGUE” had been sufficiently demonstrated by Nanso Group Oy, though only for knitted garments. Advance Magazine Publishers, Inc. then brought an action to the EU General Court in which it sought the rejection of the opposition within the scope concerning head coverings, shoes, boots, sandals, women’s blouses, dresses, skirts, jackets, pullovers, suits, cardigans, trousers, shorts, swimwear, coats, scarves, suspenders and belts. The Court, however, dismissed the action brought and charged Advance Magazine Publishers, Inc. with the costs of the proceedings. The applicant argued, among other things, that the Board of Appeal did not place enough weight on the significance of the element “TEEN”, even though that word element, positioned at the beginning of the trade mark submitted, is of particular importance to the overall impression made by the mark. In the plaintiff’s view, that element comprises a distinguishing element of the mark. In respect of the goods themselves, the plaintiff pointed out that those goods “are not in a competitive relationship with each other”. The EU General Court agreed with the Board of Appeal that, for the relevant group of consumers (i.e., all consumers in Sweden), there is a visual and phonetic similarity between the contested designations, and that taking account of English-speaking Swedish consumers also leads to the conclusion that a conceptual similarity between the two designations does exist. Given the visual and phonetic similarity between the contested designations and the fact that the goods identified by the earlier Swedish word trade mark “VOGUE” on the one hand, and the submitted trade mark on the other hand, are partly identical and partly similar, there does exist a likelihood of confusion. The EU General Court, then, confirmed that the OHIM Opposition Division had justly refused to register the trade mark submitted. Source: www.curia.europa.eu PL – Is the advertising slogan “LODY PRAWDZIWIE DOMOWE” subject to protection?: Ruling of the Supreme Administrative Court In a ruling of 4 February 2014 (II GSK 1708/12), the Supreme Administrative Court (SAC) dismissed a cassation appeal by “E.C.” sp. z o.o. against a ruling by the Provincial Administrative Court in which that court upheld a decision by the Polish Patent Office (PPO) that was unfavorable towards the appellant, concerning a refusal to grant a protection right to a trade mark. E.C. applied for registration of the word trade mark “LODY PRAWDZIWIE DOMOWE” for goods and services such as milk products, frozen yoghurts, dough for waffles for ice cream, waffles for ice cream, sweets, edible ices, powdered edible ices, sorbets, binders for edible ices, confectionery products, ice cream advertising, fast-food bar, cafeteria, café and restaurant services for the production and sale of ice cream. In the decision in February 2011, the PPO refused to grant E.C. a protection right to the trade mark submitted. In the PPO’s opinion, the designation was not sufficiently distinctive. The PPO also noted in its decision that the designation submitted, in relation to goods other than ice cream, is misleading in nature. Moreover, in the authority’s assessment, the contested designation does not meet the basic function of a trade mark, which is to identify a business. In the opinion of the PPO, the designation in question would not be perceived by consumers as a trade mark, only as a descriptive designation having no connection with any specific business entity. The PPO held that “semantically, the combination of the word elements “lody”, “prawdziwie” and “domowe” does not create a concept far enough removed from the content of those words simply read together to act as an indication of the commercial origin of goods”. The absence of any graphic element (additional elements) also prevents consumers from associating the mark with a specific source of the goods bearing it. The PPO held that the designation is not distinctive, and so registering it would violate the principles of freedom of economic activity and fair competition. In considering the appeal against the PPO decision, the SAC found that, semantically, the combination of the word elements “lody”, “prawdziwie” and “domowe” is neither fantastic nor abstract in nature, and so does not meet the characteristic functions of a trade mark. The SAC also so ruled, referring to a ruling also cited by the court of first instance, that by the ECJ of 23 October 2003 (C-191 P), according to which the registration of a trade mark should be rejected if even one of the meanings of an element of the mark describes the characteristics of the goods or services. In analyzing the case at hand, the SAC categorically stated that “the contested word trade mark “LODY PRAWDZIWIE DOMOWE” transmits information in a descriptive way about the characteristics of the goods (truly homemade), as results from the very meaning of the words used therein”. E.C.’s attempt to appeal to other decisions in which the registration of a mark containing the word “domowe” was allowed proved ineffective because, as the court of first instance had held, every trade mark is considered individually. The PAC further held that “slogans are subject to protection as trade marks, but their submission is subject to evaluation by the PPO under rules similar to those for all other types of trade marks”. The SAC fully agreed with the exhaustive argumentation of both the PPO and the court of first instance, which had stated that the designation submitted is an advertising slogan, and cannot be granted protection as a trade mark. Source: www.orzeczenia.nsa.gov.pl PL – Order to return marketing charges: Ruling of the Court of Appeal in Gdansk At the beginning of this year, another important ruling was handed down in a case concerning fees charged by chain stores for the acceptance of goods for sale (case file No. I ACa 702/13). A supplier brought the case against the owner of a hypermarket, which included a series of marketing charges in an agreement, which it then regularly collected from the supplier. The claimant sought the return of the amounts paid, together with interest. It argued that the value of the charges paid as a fee for alleged marketing services did not result in a benefit provided in return. As a result, in the claimant’s opinion, those charges, while formally due to the defendant for marketing services, in fact constituted charges for the acceptance of goods for sale, which is prohibited by Article 15 par. 1 pt. 4 of the Act on Combating Unfair Competition. 2/2014 9 The agreement concluded between the parties contained an obligation to pay the defendant charges for “advertising the product on billboards” and for “promoting the brand, product range and new products, and taking part in advertising and marketing activities”. An appendix to the agreement states that the supplier undertook to allocate a minimum of 8 per cent of net turnover (settled monthly, quarterly and at mid-year) for advertising services relating to the claimant, for advertising its brand and products. The defendant issued invoices for marketing services and then deducted the related amounts from the amounts due to the supplier for deliveries of goods. The defendant claimed that it had actually performed the services in question for the claimant, and that, therefore, it could not be held that its collecting charges was unlawful. The court of first instance found in favor of the store owner, stating that the claimant was not entitled to a return of the charges paid for marketing services. The products of the claimant were published in the hypermarket’s anniversary leaflet and national catalogue. Moreover, the defendant offered goods of the claimant in its stores at promotional prices and displayed them in a special way. The Regional Court also found that, since the claimant concluded the cooperation agreement in question, that means that it agreed with the conditions contained therein. The Court of Appeal in Gdansk, however, overturned the ruling of the court of first instance. It noted that the promotions in the defendant’s stores were run at the expense of the supplier, because it granted 10 Trade marks and unfair competition the defendant a promotional discount. The court also analyzed the agreement binding the parties and found that it clearly described the benefits the defendant was to obtain for the alleged marketing services (at least 8 per cent of net turnover) but did not state what specific benefits the supplier (claimant) was to obtain in return for paying the agreed amount. In respect of the material evidence provided by the defendant in the form of advertisements intended to show that the marketing services had been performed for the benefit of the claimant, the court found that, in essence, these advertised the store and not the products. The claimant’s products were shown in leaflets among many other offers and in were in no way highlighted from among those others. For those reasons, the Court of Appeal in Gdansk overturned the ruling and ruled that the defendant pay the claimant the amount demanded, together with interest. Source: www.orzeczenia.gdansk.sa.gov.pl Other issues FR – Creation of a new industrial property right in France: “The geographical indication of industrial and handicraft products” Olivia Roche, Claude-Etienne Armingaud The law no. 2014–344 on consumption, named “Hamon Act” and dated March 17, 2014, creates a new industrial property right: the “Geographical Indications protecting Industrial Products and Crafts” (or “Indications Géographiques protégeant les Produits Industriels et Artisanaux”, herein, IGPIA). Until now, the protection of geographical indications was reserved, both at French and European level, to agrofood products, leaving aside the industrial and handicrafts products, whose quality is related to a specific know-how linked to their geographical origin. The IGPIAs cover well-known products, such as Quimper pottery, Limoges porcelain, Basque linen or Calais lace. Nine new provisions have been added to the French Intellectual Property Code (IPC), in order to clarify the implementation mechanisms for the management and the protection of IGPIAs. This new regulatory framework completes the legal arsenal for the protection of industrial property. These new provisions must be combined with the existing rules of trademark law, and thus emphasize a possible competition between the two regimes. A previous protection exclusively reserved to agrofood products The protection system of geographical indications of origin for food and agricultural products dates back to the early 20th century. At the French level, the label “Controlled Designation of Origin” (AOC) protects wine products (since 1935), and all agricultural and food products, raw or processed (since 1990). In 1992, the protection of the geographical origin of agrofood products was extended to the European level by the creation of “Protected Geographical Indication” (PGI) and “Protected Designation of Origin” (PDO). These two indications identify agrofood products according to their characteristics and their geographical origin with, PGI offering a more flexible protection, in terms of the link between the product and the territory, than PDO. The famous case of the “Laguiole” cuttery, where the trademark “Laguiole” was filed without difficulty by a third party before flooding the market with poor quality knives, made in China, highlighted the risks related to this lack of protection. Thus, the initial protection project, initiated before the change of political majority, has been endorsed by the Hamon Act. A new industrial property right The new Article L.721-2 of the IPC follows the rationale behind the definition of geographical indications by the World Intellectual Property Organization (WIPO). The stated objective of the IGPIA is to identify a product – industrial or craft-based – according to its geographical origin, when said product meets a specific quality, reputation or other characteristics that are essentially attributable to that geographical origin. The production or the processing operations must take place in the identified area. The IGPIA criteria, in terms of link between the product and the territory, are the more flexible than for the AOC and PDO (e.g., the raw materials used for the manufacture of products, do not need to come from the geographical area identified). Therefore, the IGPIA regime is closer to the European PGI. The application for approval and the monitoring of an IGPIA must be made, at the French National Institute for Industrial Property (INPI), by an “Organization for Defense and Management”, bearing legal personality (art. L.721-4 of the IPC), according to specifications, which must indicate precisely the relationship between the product and its geographical indication. The IGPIA enjoys a broad protection that guarantees the products against any practice likely to mislead the consumer with regards to its true origin and its qualities. Any breach of protection given to a product by an IGPIA may be punished by a sentence up to two years imprisonment and a € 300,000 fine. 2/2014 11 Competition with the trademarks law? The IGPIA system must be analyzed in connection with legal provisions already applicable to trademarks protection, thus likely creating competition between beneficiaries of the two regimes. According to Article L.712-4 of the IPC, as amended by the Hamon Act, the right of opposition may now be exercised by a local authority or an Organization for Defense and Management of an IGPIA. Similarly, the Hamon Act amends Article L.711-4 of the IPC, the IGPIA being added to the list of prior rights, which may justify the reject of an application for filling or the cancellation of a registered trademark. Thus, a trademark may be canceled pursuant to Article L.714-3 of the IPC if it affects the prior rights related not only to a “geographical indication”, but also to “the name, the image or the reputation of a territorial authority”. Finally, Article L.712-2-1 of the IPC creates a warning system for territorial authorities, which can now request from the INPI to be informed in the event of the application for a trademark containing their name. The Hamon Act, with the creation of IGPIA, offers to the industrialists and the artisans a new legal tool in order to defend their knowhow and for the territorial authorities to protect their local economy. For now, the effective protection of IGPIA stops at national borders. Nevertheless, the EU is seriously considering the possibility to extend the IGPIA to non-agrofood products. Consequently, a true evolution of the protection system of industrial property has been initiated. Indeed, the owner of a trademark containing a geographical indication, when its production does not bear a sufficient connection with a local know-how, could see its trademark canceled, if a local authority proves that it infringes on its name, image or reputation, or if the owner of an IGPIA claims a first-in-time priority. Trademarks holders will now have to take into account the interests and prerogatives of local authorities and local actors wishing to protect their handcraft and reputation. 12 Trade marks and unfair competition AU – Review of changes in opposition procedures in Australia Chris Round Introduction The Intellectual Property Laws Amendment (Raising the Bar) Act 2012 (Cth) (“Act”) came into effect on 15 April 2013, and represents a significant revision of Australian trade marks law. In particular, the Act seeks to strengthen and streamline the trade mark opposition and enforcement system by making significant changes to the Trade Marks Act 1995 (Cth). There are further changes relating to patents, copyright and registered designs that are not the subject of this article. The most significant aspects of the trade mark law reforms brought in by the Act are: • • • • • the inclusion of a presumption of registrability for marks with respect to descriptiveness; a revised process for the opposition of trade mark applications; a strengthened customs seizures regime; an increased variety of options for the enforcement of trade mark rights; and an extension of attorney-client privilege to fully embrace trade mark attorneys. I intend to focus on the changes to the opposition process in this article. Reform of the process for opposition of trade mark applications One of the most significant effects of the Act is to alter the process for opposing applications for registration of trade marks, with a strong focus on reducing potential delays in the system. Some of the most noteworthy alterations to the trade mark opposition process include that: • opponents will no longer have to notify the applicant of the opposition, as this will now be undertaken by IP Australia; • instead of filing just a notice of opposition, opponents will be required to file a notice of their intention to oppose the registration of a trade mark within two months of the acceptance of the trade mark, and then file a statement of their grounds for the opposition within one month of filing the opposition. This reform is intended to prevent opponents from claiming all grounds in every opposition unless warranted; • a pplicants will be required to file a notice confirming their intention to defend their mark against the opposition within one month of the opposition being filed or the application for registration will lapse. This will ensure that the opponent need not pursue the opposition process to hearing without the participation of the applicant, as was previously possible; • extensions of time will still be available but they will be significantly harder to obtain; and • there is an allowance for regulations to be made relating to trade mark opposition issues such as the rules about filing and serving documents in an opposition and rules about the amendment of documents filed in an opposition. All of these changes to the trade mark opposition process are overtly designed to streamline the opposition process, which had been considered by some to be overly cumbersome. In Australia, trade mark oppositions could often take three to five years due to unreasonable delays undertaken by the parties at each step of the process. The changes to the opposition procedures are designed to speed up oppositions, including by a summary dismissal of an application if the owner chooses not to defend. As a result, legal practitioners and trade mark owners must be vigilant of the changes or trade mark applications will be registered or may lapse due to non-compliance with procedural matters. Additionally, as a statement of the grounds for the opposition needs to be filed 2/2014 13 by the opponent, parties seeking to oppose a trade mark must efficiently define the grounds on which an application will be opposed prior to the issuing of the notice or risk being unsuccessful on the grounds claimed. Conclusion After 12 months, it appears that the Act has had the practical effect of speeding up opposition matters and focusing opponent’s attention on the real issues in dispute at a far earlier time. The days of endless extension of time applications in Australian oppositions appears to be over. This is an excellent result and provides certainty to both applicants and opponents far sooner. 14 Trade marks and unfair competition Information on the activities of the K&L Gates Warsaw intellectual property team K&L Gates’ intellectual property team consists of seven lawyers (including a patent and trademark attorney) who provide services to Polish and foreign clients on all aspects of their businesses. We advise on protecting intellectual property rights, including in litigation, customs protection proceedings, and penal proceedings concerning piracy and other exclusive rights infringements. We prepare applications and submissions to the Polish Patent Office and the Office for Harmonization in the Internal Market (OHIM) on registering trade marks, and we represent clients in dispute proceedings. We also focus on various issues relating to unfair competitions and conflicts between designations. We have extensive experience in preparing agreements concerning copyright and media concluded between business entities, including licensing, publication, distribution and dubbing agreements, as well as agreements concerning film and television production. We deal with the regulations covering new technologies, personal data protection and issues relating to the protection of business secrets and advertising law. Our intellectual property experience is wide and varied. We represent clients before both the civil and criminal courts, as well as before public authorities and the administrative courts. For further information please, contact: Oskar Tułodziecki Oskar.Tulodziecki@klgates.com Marta Wysokińska Marta.Wysokinska@klgates.com Agata Lewartowska-Błaszczyk Agata.Lewartowska-Blaszczyk@klgates.com Michał Ziółkowski Michal.Ziolkowski@klgates.com Dorota Koseła Dorota.Kosela@klgates.com Chris Round Chris.Round@klgates.com Ewelina Madej Ewelina.Madej@klgates.com Claude-Etienne Armingaud Claude.Armingaud@klgates.com Ewa Rusak Ewa.Rusak@klgates.com Olivia Roche Olivia.Roche@klgates.com K&L Gates Jamka sp.k. K&L Gates K&L Gates LLP Al. Jana Pawła II 25 Level 25 South Tower, 525 Collins Street 116 avenue des Champs-Elysées 00-854 Warszawa, Polska Melbourne VIC 3000, Australia 75008 Paris, France www.klgates.com www.klgates.com www.klgates.com T: +48 22 653 4200 T: +61 3 9205 2000 T: +33 0 15 844 1500 F: +48 22 653 4250 F: +61 3 9205 2055 F: +33 0 15 844 1501 If you are interested in obtaining an electronic version of the bulletin, please send your request to: Emilia.Pisarek@klgates.com with the subject line: “TM Bulletin”. Anchorage Austin Beijing Berlin Boston Brisbane Brussels Charleston Charlotte Chicago Dallas Doha Dubai Fort Worth Frankfurt Harrisburg Hong Kong Houston London Los Angeles Melbourne Miami Milan Moscow Newark New York Orange County Palo Alto Paris Perth Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco São Paulo Seattle Seoul Shanghai Singapore Spokane Sydney Taipei Tokyo Warsaw Washington, D.C. Wilmington K&L Gates practices out of 48 fully integrated offices located in the United States, Asia, Australia, Europe, the Middle East and South America and represents leading global corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals. For more information about K&L Gates or its locations, practices and registrations, visit www.klgates.com. This publication is for information purposes only and should not be used in order to make binding decisions. The topics raised herein are the result of a subjective selection made by the authors of the bulletin, and do not constitute an exhaustive discussion of all issues. The information contained herein only concerns selected aspects of the law. The content of the bulletin cannot be treated as legal advice. ©2014 K&L Gates LLP. All Rights Reserved.