LAWWATCH 0 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION EXECUTIVE SUMMARY LEGISLATIVE DEVELOPMENTS • Goods and Services Tax (Amendment) Act o The Goods and Services Tax (Amendment) Act (“GST Amendment Act”) was passed by Parliament on 8 October 2014 and took effect on 1 January 2015. o New provisions in the GST Amendment Act will allow non-legal entities (each an “NLE”) to claim GST incurred on acquisitions of intellectual property rights or licences to use any intellectual property rights and account for GST on supplies of such intellectual property rights or licences. o This puts NLEs on par with legal entities such as companies. An NLE refers to a partnership or limited partnership, or any club, association, society, or organisation. COPYRIGHT: • Omnibill (Pty) Ltd v EGPSXXX Ltd (in liquidation) [2014] EWHC 3762 (IPEC) (England, High Court, 17 November 2014) o The plaintiff operates a website in South Africa. o The defendants set up a website in the UK offering a competing service and used copyrighted photographs from the plaintiff’s website. o The plaintiff brought a claim for copyright infringement in the UK. In order to establish that the defendants’ website had infringed the plaintiff’s copyright in the UK, the plaintiff had to show that the website or the relevant parts of it was targeted at the UK. o The question of whether a website is targeted to a particular country is a multi-factorial consideration which depends on all the circumstances, including things which can be inferred from looking at the content of the website itself as well as elements arising from the inherent nature of the services offered by the website. o The English High Court held that the defendants’ website was targeted at the UK, noting among other things that a significant number of its visitors were from the UK. Accordingly, it held that the defendants had infringed the plaintiff’s copyright. • PP v St. Hua Private School Pte Ltd, Song Chunwei [2014] SGDC 342 (Singapore, District Court, 29 August 2014) o This case offers a rare opportunity to consider the application of section 136(3A) of the Copyright Act. o This section makes it a criminal offence to wilfully infringe copyright to obtain a commercial advantage. o A company (with the connivance of its sole director and shareholder) had wilfully offered training courses in a particular software on a © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. 1 2 4 < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 1 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION o o commercial basis despite knowing that it did not have a licence to do so. The Singapore District Court held that the company was guilty of an offence under section 136(3A) of the Copyright Act (wilful infringement of copyright) and fined it S$18,000. The Court also held that the company’s sole director was guilty of an offence under section 201B(4) of the Copyright Act (offences of a body corporate committed with the connivance of a director) and fined her S$20,000. REGISTERED DESIGNS: • Biscuits Poult SAS v OHIM, Case T-494/12 (Europe, European Court of Justice, 9 September 2014) o The applicant filed an application for registration of a Community design in respect of cookies, on the basis that the cookie when broken showed a single layer of chocolate filling. o The Biscuits Design was declared invalid on the ground that it lacked individual character and the applicant appealed to the European Court of Justice. o The Court noted that under Council Regulation No. 6/2002 on Community Designs, protection of a design is restricted to visible elements and to the impression produced on an informed user viewing the product’s appearance. o It therefore held that the since the layer of chocolate filling inside the cookie was not visible because the product had to be broken open for the filling to become visible, this particular characteristic of the design should not be taken into account for the assessment of its individual character. TRADE MARKS: • Interflora Inc & Anor v Marks & Spencer plc [2014] EWCA 1403 (Civ) (England, Court of Appeal, 5 November 2014) o Interflora provides an online service for the ordering and delivery of flowers. o Marks & Spencer also provides on online flower delivery service that is wholly unrelated to Interflora. o Marks & Spencer advertised its flowers online via the Google Adwords service. It entered into a contract which provided that when consumers searched for the name “interflora” or variants thereof, a Marks & Spencer advertisement for flowers would appear on the search page. o The English Court of Appeal held that such activity might amount to infringing use of the “interflora” trademark if it gave rise to confusion on the part of the average consumer as to the origin of the goods. It remitted the case back for retrial. © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. 7 10 < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 1 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION LEGISLATIVE DEVELOPMENTS Goods and Services Tax (Amendment) Act The Goods and Services Tax (Amendment) Act (“GST Amendment Act”) was passed by Parliament on 8 October 2014 and took effect on 1 January 2015. It amended the Goods and Services Tax Act (“GST Act”) to provide for, among other things, the situation where a bare trustee of a non-legal entity (“NLE”) holds any goods, intellectual property rights, or the licence to use any intellectual property rights on trust for the business of persons carrying on the business in partnership or a person that is a club, an association, a society, or an organisation. Key Features of the Bill To discuss the possible implications of this for your business, please contact: LAM Chung Nian d: +65 6416 8271 e: chungnian.lam@ wongpartnership.com The amendments aim to put NLEs on par with legal entities in relation to their tax implications for supplies relating to goods, intellectual property rights, and licences to use intellectual property rights. A new section 10A will be added to the GST Act such that supplies of goods, intellectual property rights, and licences to use intellectual property rights made to a bare trustee will be deemed to be made to the NLE. Similarly, section 19 of the current GST Act will be amended such that supplies relating to the same made by the bare trustee on behalf of an NLE will be deemed to be made by the NLE. Jeffrey LIM d: +65 6416 8250 e: jeffrey.lim@ wongpartnership.com The definition of “bare trustee” will be added to section 2(1) of the GST Act, to mean a trustee who: • holds any goods on trust for the business of NLEs; • has no interest in those goods other than by reason of being the trustee; and • has no duty to perform in relation to those goods other than to act with instructions given by the NLE for supply relating to those goods. Previously, NLEs were not able to claim input tax on supplies made to the bare trustee. NLEs will now be able to claim input tax and will need to charge output tax in relation to the deemed supplies. The GST Amendment Act further clarifies that the reference to a supply relating to goods in sections 21(6A) and (6B) and 21B of the current GST Act is a reference to a sale or letting on hire of goods, and not any other service that may be performed in relation to goods. © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 2 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION COPYRIGHT The plaintiff operates a website in South Africa. The defendants set up a website in the UK offering a competing service and used copyrighted photographs from the plaintiff’s website. Held that the defendants had infringed the plaintiff’s copyright in the UK as it could be shown that the defendants’ website was targeted at the UK and hence infringement of UK copyright had taken place: -- Omnibill (Pty) Ltd v EGPSXXX Ltd (in liquidation) [2014] EWHC 3762 (IPEC) (England, High Court, 17 November 2014) Facts Omnibill (Pty) Ltd (the “Plaintiff”) operates a website for the provision of escort services in South Africa. The first defendant, a UK incorporated company, set up a website offering similar and competing services, and copies of the photographs on the Plaintiff’s website appeared on it (“Infringing Website”). The second defendant, Mr Carter, is the sole director and sole shareholder of the First Defendant (“Second Defendant”). The technical work to set up the Infringing Website was undertaken by Mr van Tonder, a South African national, whom the Second Defendant met at a party. The Plaintiff brought a claim against the First and Second Defendants for copyright infringement. It was undisputed that the copyright in the photographs belong to the Plaintiff or that copies of the photographs were reproduced onto the Infringing Website. A major issue in this case was whether the Infringing Website or the relevant parts of it were targeted at the UK. The contention was that if the Infringing Website was not targeted at the UK, then no infringement of UK copyright had taken place. Decision The English High Court held that the First Defendant had infringed the Plaintiff’s copyright and that, having authorised those infringing acts, the Second Defendant was liable as a joint tortfeasor. The Court first noted that the question of whether a website is targeted to a particular country is a multi-factorial consideration which depends on all the circumstances, including things which can be inferred from looking at the content of the website itself as well as elements arising from the inherent nature of the services offered by the website. In deciding whether the acts of © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 3 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION communication to the public are targeted at the public in the UK, the Court would consider the following factors: • the international nature of the activity; • the use of a language or a currency other than the language or currency generally used in the territory in which the trader is established; • the mention of telephone numbers with an international code; • outlay of expenditure on an internet referencing service in order to facilitate access to the trader’s site or that of its intermediary by consumers domiciled in other territories; • the use of a top-level domain name other than that of the territory in which the trader is established; and • mention of an international clientele composed of customers domiciled in various territories. The Court agreed with the Plaintiff that the Infringing Website could target more than one territory and that did not preclude the claim that there was communication to the public in the UK. The Court also agreed that it was possible for different parts of the website to target different territories and this was a question of fact. In this instance, the Court paid particular attention to the number of visitors accessing the website from the UK. The Court held that whilst such evidence may not be determinative, it would support a conclusion that the acts of communication to the public were targeted at the public in the UK. Based on the traffic information provided by the Plaintiff with regard to the number of visitors to the Infringing Website, the Court concluded that between 10% to 25% of the visitors to the South African sub-domain were from the UK and that this figure constituted a substantial proportion of the visitors to the website. The Court also concluded that there was communication to the public in the UK based on the structure and overall website. In particular, the Court referred to: • the Terms and Conditions of the Infringing Website (which states “This site is operated from the United Kingdom. The courts of the United Kingdom shall have exclusive jurisdiction over all claims or disputes arising in relation to, out of or in connection with this website and its use and these terms”); and • the Terms of Service (which states “Escortgps is owned and operated by EGPSXXX Ltd, a UK based company dedicated to providing a top quality, legal and ethical English escort website”). Lastly, the Court held that even though the Infringing Website had subdomains, these sub-domains were merely part of the whole global website © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 4 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION and were not exclusively targeted at individual countries. Accordingly, the Court held that one could infer from the content of the Infringing Website that the operators intended that visitors from the UK would visit the South African sub-domain. While the Court acknowledged that there was a significant local element to the content of the South African sub-domain (for example, the services offered by the escorts were located in South Africa and the prices quoted were in Rand), this was not necessarily a barrier to concluding that the website was also targeted at the UK since one important way through which the operators of the Escortgps website earned revenue was by generating traffic to the site and earning money from advertising (and this traffic could be from anywhere in the world). Our Comments / Analysis Section 26 of the Singapore Copyright Act and section 20 of the UK Copyright, Designs and Patents Act are similar to the extent that the communication to the public of a literary, dramatic, musical, or artistic work is an act that is exclusive to the owner of the copyright. Neither pieces of legislation define what the “public” is. In light of ever-improving technology and the increasing role which the internet plays in our lives, the case law developments in the UK may serve as valuable guidance on other considerations in addition to the factors that the court is to consider when determining if the communication of the work targets the public in Singapore. Where the two accused had knowingly and wilfully continued to offer training courses in a particular software for a fee despite not having a licence to do so, held that they had infringed the copyright in the software to obtain a commercial advantage and were guilty of an offence under sections 136(3A) and 201B(4) of the Copyright Act: -- PP v St. Hua Private School Pte Ltd, Song Chunwei [2014] SGDC 342 (Singapore, District Court, 29 August 2014) This case offers a rare opportunity to consider the application of section 136(3A) of the Copyright Act. This section provides as follows: “Where, at any time when copyright subsists in a work: (a) a person does any act that constitutes an infringement of the copyright in a work other than an act referred to in subsection (1), (2), (3) or (6); © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 5 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION (b) the infringement of the copyright in the work by the person is wilful; and (c) either or both of the following apply: (i) … (ii) the person does the act to obtain a commercial advantage, the person shall be guilty of an offence…” Facts Song Chunwei (“Song”) was the director and sole shareholder of St Hua Pte Ltd (“St Hua PL”). St Hua PL had been appointed as a reseller of software (“Siemens Software”) published by Siemens Product Lifecycle Management Software Inc. (“Siemens”). It was also authorised to carry out training courses on the use of the Siemens Software. The licences to sell the Siemens Software and to carry out training courses in the Siemens Software were terminated with effect from 31 March 2010, and the Siemens Software had to be uninstalled after that date. Song incorporated St. Hua Private School Pte Ltd (“St Hua PSPL”) on 15 April 2010, barely two weeks after 31 March 2010 when St Hua PL was no longer permitted to use the Siemens Software to conduct training. She was its sole director and shareholder. St Hua PSPL continued to offer training courses on Siemens Software. The Singapore District Court found on the facts that Song, knowing that St Hua PL was no longer permitted to use the Siemens Software to conduct training, simply incorporated St Hua PSPL to continue offering training courses on the Siemens Software, in order to circumvent the prohibition against St Hua PL in doing so. St Hua PSPL and Song were charged by way of private summons on behalf of Siemens for: • Wilfully infringing copyright in the Siemens Software; and • Authorising students attending the Siemens Software training course to reproduce material from copies of the Siemens Software without the appropriate licence to do so. They were prosecuted for copyright offences under section 136(3A) of the Copyright Act (wilful infringement of copyright) and 201B(4) of the Copyright Act (offences of a body corporate committed with the connivance of a director) respectively. © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 6 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION Decision The Singapore District Court found St Hua PSPL guilty of infringement of copyright: • Copyright subsisted in the Siemens Software at the time of the offence. • By installing the Siemens Software in seven computer desktops after 31 March 2010 when St Hua PL was no longer authorised to use the software, St Hua PSPL had reproduced in material form seven copies of the Siemens Software. • Additionally, by allowing the students to use the Siemens Software to practise creating various objects and then saving the works in the computer, St Hua PSPL had authorised the students to reproduce in material form 11 copies of the Siemens Software in its computer desktops after 31 March 2010. St Hua PSPL was further found to have “wilfully” infringed this copyright: • Song was aware that as of 31 March 2010, her related companies did not have the right to use the Siemens Software for training or maintenance. • St Hua PL continued to represent itself on its website as the channel partner of Siemens and training provider after 31 March 2010, which resulted in Siemens sending Song a cease and desist letter, after which Song ceased these representations. • Song had set up St Hua PSPL shortly after 31 March 2010 for no apparent reason other than to evade the prohibition against St Hua PL using the Siemens Software. • St Hua PSPL had authorised its students to infringe Siemens’ copyright. • St Hua PSPL was offering the training course on Siemens Software on a commercial basis to obtain a commercial advantage in the form of course fees. The Court accordingly imposed a fine of S$18,000 on St Hua PSPL. Song was found guilty of an offence under section 201B(4) of the Copyright Act: the offence committed by St Hua PSPL had been committed with her connivance in her capacity as a director of St Hua PSPL. She was found to have been the main driving force for St Hua PSPL’s activities, being directly involved in the running of the school’s activities. She was fined S$20,000. Our Analysis / Comments Section 136(3A) was inserted into the Copyright Act in 2004 to provide for criminal penalties for wilful copyright infringement in cases where the extent of infringement is significant, or where the individual carried out the act to obtain a commercial advantage. The amendment had been made in a bid to © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 7 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION counter the ease with which copyright-infringing syndicates were riding on improving internet technology to post movies and software online, as such activities may cause substantial harm to the copyright owner. Most of the cases citing section 136(3A) to date have applied the section in connection with an organisation’s installation of unlicensed or infringing software programmes on their computers. The case is also interesting in its application of the legal test as to the factors to be considered for liability for authorisation of infringement of copyright. The decision not only re-affirms the position that the factors stated in RecordTV Pte Ltd v MediaCorp TV Singapore Pte Ltd & Ors (2011) for considering authorisation liability are to be considered in their totality and in the context of the factual matrix of each case, it is also a useful precedent where a finding of liability for authorising infringement was made. REGISTERED DESIGNS The applicant filed an application for registration of a Community design in respect of cookies, on the basis that the cookie when broken showed a single layer of chocolate. Held that the since the layer of chocolate filling inside the cookie was not visible because the product had to be broken open for the filling to become visible, this particular characteristic of the design should not be taken into account for the assessment of its individual character: -- Biscuits Poult SAS v OHIM, Case T-494/12 (Europe, European Court of Justice, 9 September 2014) Facts On March 2009 the applicant, Biscuits Poult SAS (“Biscuits”), filed an application for registration of a Community design with the Office of Harmonisation in the Internal Market (“OHIM”) pursuant to Council Regulation No. 6/2002 on Community Designs (“Regulations”). The design (“Biscuits Design”) in respect of which registration was sought was intended to be applied to “cookies” and is represented below: © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 8 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION On February 2010, the intervener, Banketbakkerij Merba BV (“Banketbakkerij”), applied to OHIM for a declaration that the Biscuits Design was invalid pursuant to article 25(1)(b) of the Regulations. Banketbakkerij alleged that the Biscuits Design: • was not new; • lacked individual character; and • was dictated by its technical function. Banketbakkerij cited the earlier designs (collectively, the “Earlier Designs”) set out below in support of its contention: The Biscuits Design was declared invalid on the ground that it lacked individual character. Biscuits appealed the decision, arguing that, among other things, the board of appeal incorrectly refused to consider the internal appearance of the Biscuits Design, thereby failing to take into account the differences between the Biscuits Design and the Earlier Designs which gave the Biscuits Design individual character. © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 9 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION Decision The European Court of Justice dismissed Biscuits’ appeal. It noted that design is defined under the Regulations as being “the appearance of the whole or a part of a product resulting from the features of, in particular, the lines, contours, colours, shape, texture and/or materials of the product itself and/or its ornamentation”. The protection of a design consists in the protection of the appearance of a product—for example, any industrial or handicraft item, or of a part of such an item. The Court also noted that under the Regulations, protection of a design is restricted to visible elements and to the impression produced on an informed user viewing the product’s appearance. On this basis, and upon further analysis of the Regulations, the Court therefore concluded that since the layer of chocolate filling inside the cookie was not visible because the product had to be broken open for the filling to become visible, this particular characteristic of the Biscuits Design should not be taken into account for the assessment of the individual character of the Biscuits Design. Also, the Court noted that the fact that Biscuits’ product bore a close resemblance to the Biscuits Design when it was broken open in order to be consumed was irrelevant. Furthermore, the irregular, rough surface on the outside of the cookie, its golden colour, round shape, and the presence of chocolate chips are characteristics which are common to the Earlier Designs and decisive for the overall impression produced on an informed user. Given the designer’s considerable freedom, these elements are not liable to produce a different overall impression on an informed user in such a way as to benefit the Biscuits Design. Our Comments / Analysis The Regulations protect designs which are new and which have individual character. A “design” is defined under the article 3(a) of the Regulations to mean “the appearance of the whole or a part of a product resulting from the features of, in particular, the lines, contours, colours, shape, texture and/or materials of the product itself and/or its ornamentation”, while a “product” is defined under article 3(b) as “any industrial or handicraft item, including inter alia parts intended to be assembled into a complex product, packaging, get-up, graphic symbols and typographic typefaces, but excluding computer programs”. As with the Singapore Registered Designs Act, further qualifications have also been set out as to what can be protected under the Regulations. For example, article 8 states that a design will not subsist in features of © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 10 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION appearances of a product where such features are dictated by their technical functions or designs of interconnections. This is not dissimilar to the definition of “design” under the Singapore Registered Designs Act, where “design” is defined as “features of shape, configuration, pattern or ornament applied to an article by an industrial process, but does not include...features of shape or configuration of an article which are dictated solely by the function which the article has to perform”. Given the monopolies afforded under registered design, such rules help to preserve the function and purpose of the design right, and provides a balance between rights owners seeking legitimate protection against the interests of members of the public who are entitled to the freedom to use designs which are otherwise commonplace. TRADE MARKS Where a competitor, not being the registered user of a trademark, contracted with a search engine such that when consumers searched for the registered trademark on that search engine, the competitor’s advertisements appeared, held that such activity might amount to infringing use of the trademark if it gave rise to confusion on the part of the average consumer as to the origin of the goods: -- Interflora Inc & Anor v Marks & Spencer plc [2014] EWCA 1403 (Civ) (England, Court of Appeal, 5 November 2014) Facts Interflora, the plaintiff, operated a network for florists who did business both in their own name and under the Interflora trademark. Customers would place orders by the internet on Interflora’s website and the order would be fulfilled by the nearest Interflora florist to the place where the flowers are to be delivered. Marks & Spencer, a British retailer, provides an online flower delivery service that is wholly unrelated to Interflora. It advertised its flowers online via the Google Adwords service. In brief, advertising via Google Adwords causes one’s advertisements (known as sponsored ads) to appear on the search results page when the user searches for one or more particular keywords. These keywords are secured by the advertiser in return for a fee, in a process known as “bidding”. © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 11 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION The search term entered by the user need not be identical for the sponsored ads to appear. Depending on the terms of the agreement between the advertiser and Google, the advertiser can choose to have the sponsored ads appear if the Google search engine deems the word relevant to the search term, or if the searched word is sufficiently close to or a variant of the keyword, in a facility known as “advanced broad match”. Google Adwords also provided a functionality known as “negative matching”, which allowed advertisers to specify search terms in which their advertisements will not appear. In 2008, Marks & Spencer bid for the keyword “interflora”, as well as a number of close variants, a number of combinations of “interflora” with a descriptive term, and Interflora’s domain names and URLs and variants of them. It also chose to use the advanced broad match facility in relation to those words. The result was that when a user searched one of the keywords secured by Marks & Spencer, such as “Interflora”, a Marks & Spencer advertisement for flowers would appear on the search page. In addition, Marks & Spencer also bid for flower-related terms without using negative matching for “interflora”. “Negative matching” allows advertisers to specify search terms in which their advertisements will not appear. Accordingly, when a customer searched for “interflora”, a Marks & Spencer advertisement might appear because Marks & Spencer had bid for a related term such as “flower delivery”. Interflora brought an action against Marks & Spencer for the infringement of both its Community and United Kingdom trademarks as a result of both of these matters. Decision The English Court of Appeal first considered whether Marks & Spencer’s bidding for the keyword “interflora” amounted to use of the trademark. It held that it could. However, the use must also adversely affect one of the functions of the trademark for infringement to be established. This would be the case if the advertising displayed on the basis of that keyword does not enable reasonably well-informed and reasonably observant internet users, or enables them only with difficulty, to ascertain whether the goods or services concerned by the advertisement originate from the proprietor of the trade mark or an undertaking economically linked to that proprietor or, on the contrary, originate from a third party. This test is qualitative, and not quantitative, and would be satisfied as long as a significant section of the relevant class of consumers would be confused even if the majority were not. If use of the trademark did not confuse the average © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 12 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION consumer as to the origin of the goods, and there was no impairment of any other function of the trademark, then the use of the trademark by a competitor for the purposes of online advertising through keywords would be permitted, insofar as it promoted fair competition. The Court remitted the case back to the trial judge for a retrial as the judge had wrongly placed the burden of proof of confusion on the defendant and not the plaintiff. The Court also considered whether Marks & Spencer had used Interflora’s trademark by bidding for flower-related terms, without negatively matching “interflora”, with the result that users searching for “interflora” might find Marks & Spencer’s advertisements instead. It ruled that if a trader had chosen a generic term with the object and effect of triggering the display of his advertisement in response to a search by a consumer of a term including or consisting of a sign which is the same as or similar to the trade mark of a rival then it is possible to say that the trader had “used” the sign for the purposes of finding trademark infringement. However, the Court cautioned that this would not be sufficient in itself to establish infringement, as the trademark proprietor would still need to show that the advertisements did not enable the average consumer to ascertain whether the goods or services referred to originated from it or the allegedly infringing user of the mark. Our Comments / Analysis European and English trademark law requires the trademark proprietor to show that there is an adverse effect on the functions of a trademark even where both the sign used and the goods or services in relation to which the sign is used are identical. In order to show an adverse effect on the functions of a trademark, in particular the function of indicating origin, there must be a likelihood of confusion on the part of the average consumer. In contrast, when dealing with such a case, Singapore law does not require an adverse effect to be shown. Section 27(1) of the Trade Marks Act provides that infringement can be found as long as a person “uses in the course of trade a sign identical with the trademark, in relation to goods and services which are identical with those for which the trademark is registered.” Hence, it is not necessary to show any adverse effect on the function of the trademark, and by extension, not necessary to show any likelihood of confusion. Confusion is presumed for such cases of double identity. However, a likelihood of confusion must be shown where either the sign, or the goods or services supplied in relation to the sign are similar, but not identical, to those of the trademark proprietor’s. © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 13 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION The Singapore position is not without its difficulties, and this is especially evident when considering the question of whether bidding for trademarked keywords and their variants, or even for related words without negatively matching the trademarked signs, amounts to an infringement. The Singapore courts have yet to consider whether bidding for a trademarked keyword amounts to “[using] the sign in the course of trade”, and how the Singapore courts will apply the current rubric of section 27 in this context remains to be seen. SOME OF OUR OTHER UPDATES DATE TITLE 18 December 2014 LawWatch: Issue 9 of 2014 26 November 2014 LawWatch: Issue 8 of 2014 20 November 2014 LawWatch: Financial Services Edition 13 November 2014 LegisWatch: Trade Reporting for FX Derivatives Contracts to Commence on 1 May 2015 © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A). LAWWATCH 14 INTELLECTUAL PROPERTY, MEDIA & TECHNOLOGY EDITION WONGPARTNERSHIP OFFICES SINGAPORE WongPartnership LLP 12 Marina Boulevard Level 28 Marina Bay Financial Centre Tower 3 Singapore 018982 Tel: +65 6416 8000 Fax: +65 6532 5711/5722 CHINA WongPartnership LLP Beijing Representative Office Unit 3111 China World Office 2 1 Jianguomenwai Avenue, Chaoyang District Beijing 100004, PRC Tel: +86 10 6505 6900 Fax: +86 10 6505 2562 WongPartnership LLP Shanghai Representative Office Unit 1015 Corporate Avenue 1 222 Hubin Road Shanghai 200021, PRC Tel: +86 21 6340 3131 Fax: +86 21 6340 3315 INDONESIA Makes & Partners Law Firm (an associate firm) Menara Batavia, 7th Floor Jl. KH. Mas Mansyur Kav. 126 Jakarta 10220, Indonesia Tel: +62 21 574 7181 Fax: +62 21 574 7180 Website: makeslaw.com MALAYSIA Foong & Partners (an associate firm) Advocates & Solicitors 13-1, Menara 1MK, Kompleks 1 Mont’ Kiara No 1 Jalan Kiara, Mont’ Kiara 50480 Kuala Lumpur, Malaysia Tel: +60 3 6419 0822 Fax: +60 3 6419 0823 Website: foongpartners.com MIDDLE EAST WongPartnership LLP Abu Dhabi Branch Al Bateen Towers, Building C3, Office 11-01 (P1) P.O. Box No. 37883 Abu Dhabi, UAE Tel: +971 2 651 0800 Fax: +971 2 635 9706 MYANMAR WongPartnership Myanmar Ltd. No. 1, Kaba Aye Pagoda Road Business Suite #03-02, Yankin Township Yangon, Myanmar Tel: +95 1 544 061 Fax: +95 1 544 069 contactus@wongpartnership.com wongpartnership.com © WongPartnership LLP This update is intended for your general information only. It is not intended to be nor should it be regarded as legal advice. < Previous Item | Home | Next Item > WongPartnership LLP (UEN: T08LL0003B) is a limited liability law partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).