Archive for the ‘Trade marks’ Category

Interflora v M&S – guidance needed on trade mark law regarding keywords

Wednesday May 27th 2009, by Piers Strickland

Summary: The English High Court will ask the European Court of Justice (“ECJ”) for trade mark law guidance on the subject of Internet search keywords in the case of Interflora v M&S

Latest case does nothing to clear up legal confusion.  Whole of Europe now awaits the ECJ’s guidance.

The Interflora v M&S case is the latest decision handed down in the contentious area of companies purchasing competitors trade marks as keywords from Internet search engines.  Here, Interflora alleged (and M&S admitted) that M&S purchased a whole array of “INTERFLORA” keywords from Google, including common misspellings.  Interestingly, however, Google was not a defendant to these proceedings.

M&S, amongst other things, argued that the relevant law (Article 5(1)(a) or (2) of the Trade Marks Directive and Article 9(1)(a) or (c) of the CTM Regulation) was far from being acte clair, as had been evidenced by the fact that a number of national courts of EU member states had already found it necessary to refer questions to the ECJ.

The Judge (the Honourable Mr Justice Arnold) went on to list various national courts around Europe that had already requested preliminary rulings from the European Court of Justice on a number of the issues arising out of Google Adwords in particular:

1.    Case C-236/08 Google France v Louis Vuitton Malletier is a reference from the Cour de Cassation in France lodged on 3 June 2008. The hearing took place before the Grand Chamber of the ECJ on 17 March 2009 together with the next two references. The Advocate General’s Opinion in all three references is expected to be delivered on 4 June 2009.

2.    Case C-237/08 Google France v Viaticum, Luteciel is another reference from the Cour de Cassation lodged on 3 June 2008.

3.    Case C-238/08 Google France v CNRRH is the third reference from the Cour de Cassation lodged on 3 June 2008.

4.    Case C-278/08 Die BergSpechte Outdoor Reisen und Alpinschule Edi Koblmüller GmbH v Günter Guni and trekking.at Reisen GmbH is a reference from the Oberster Gerichtshof in Austria lodged on 26 June 2008. The hearing of this reference took place on 7 May 2009.

5.    Case C-558/08 Portakabin Ltd v Primakabin BV is a reference from the Hoge Raad der Nederlanden lodged on 17 December 2008.

6.    Case C-91/09 Eis.de GmbH v BBY Vertreibsgesellschaft mbH is a reference by the Bundesgerichtshof in Germany made by order dated 22 January 2009 and lodged on 6 March 2009.

M&S sought to have the whole case stayed pending the above references being handed down.  For various reasons, the Judge felt that this did not offer sufficient certainty that the ECJ would answer all of the questions raised by this case.  For example, there was the possibility that some references to the ECJ might be withdrawn.  Accordingly, the Honourable Mr Justice Arnold ruled that the parties should submit further questions for him to approve before formally referring them to the ECJ.

The parties were expressly referred to and asked to consider the Honourable Mr Justice Arnold’s other decision of the same date: L’Oréal v eBay, before finally committing themselves to an ECJ reference.

The Judge refused Interflora’s request that M&S be injuncted from using INTERFLORA keywords until the full trial of this issue, ruling that Interflora had not moved quickly enough or consistently enough in this respect, to justify what was in effect a late interim injunction application.

Now, Interflora will no doubt have to endure the painful process of hoping that the ECJ answers the relevant questions quickly and effectively.

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L’Oréal’s trade mark attack on eBay gets referred to the ECJ

Tuesday May 26th 2009, by Piers Strickland

The English High Court has just handed down its decision in the case of L’Oréal v eBay & Others.  In it, the English Court recognised but felt unable to clarify the law surrounding key usages of trade marks on eBay.

The case was complex and centred on another new method of doing business over the Internet, which has resulted in an explosion of infringements: the online auction-house.  The Court was asked to decide:  who should incur the legal and practical responsibility for monitoring and taking action against such infringements.  L’Oréal considered that eBay’s current anti-counterfeiting procedures (such as its Vero procedures) were not sufficient.  However, L’Oréal’s claim went further; it claimed that eBay had a “common design” with those selling the infringing goods to infringe the rights of L’Oréal.

The Judge seemed to have a lot of sympathy for L’Oréal’s position, stating in his judgment that he thought that perhaps eBay should go further to protect against infringements.  An intriguing quote from the late and great Lord Denning was used by the Judge to float the idea that the auctioneer in today’s Internet age (i.e. eBay) should have the responsibility for ensuing good and proper title and that its fee might be considered as inclusive of insurance against any such defective title problems.

L’Oréal also complained about eBay’s use of its trade marks as key words on popular search engines such as Google.  EBay countered claiming certain defences under the E-Commerce Directive.

In one respect, the Judge came down on the side of eBay in that he held that eBay were not jointly liable for the infringements committed by the individual sellers (who were also defendants in this action).  This was perhaps not a particularly surprising result, as often quite compelling evidence is needed to prove such “common design”.

However, in most respects, the Judge stating his intention to refer the key questions to the European Court of Justice (ECJ), i.e.:

1. As to whether eBay infringed L’Oréal’s trade marks by use in sponsored links and on the eBay site.
2. Whether eBay Europe has a defence under Article 14 of the E-Commerce Directive.
3. The scope of the injunctive relief which Article 11 requires national courts to grant in such circumstances.

As a result, the law in these areas is still extremely unclear for companies in the online marketplace. L’Oréal has corresponding actions across the EU, which have been reported as favourable for eBay in France and Belgium, and in favour of L’Oreal in Germany.  The Court’s decision in Spain is still outstanding.

Until as such time as the ECJ provides additional guidance, or, more probably, until the European trade mark laws are revised, the level of uncertainty for online traders will remain high in this area.

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Trade mark rights in designer’s name

Wednesday May 20th 2009, by Piers Strickland

If you are a designer, think carefully before signing your brand / trade mark rights away.

A recent case, handed down by the European Court of First Instance, reinforced prior case law. This time, a designer, ELIO FIORUCCI, assigned over his IP in his business, only later to object to a trade mark application being made by the assignee for his full name to be registered as a trade mark (as opposed to the previous trade markuse of his surname only). The CFI held that the subsequent use of the designer’s full personal name as a trade mark would not mislead the public and so was registrable.

In other words, the designer, by signing away his trade mark rights in his surname and business could then not stop his former business from using his full name as well.

If you need to keep using your name for your profession / business, it would often be better only to license your trade mark rights in the first place, perhaps only on a non-exclusive basis, so as to retain more control of the future use of your trade marks.

A full transcript of the case can be found on the OHIM website: CFI case. The case went on to rule on certain specific provisions of Italian trade mark law.

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Chinese trade mark rights

Wednesday May 20th 2009, by Piers Strickland

Having attended an INTA Seattle talk given by Vivien Chan & Co talk on trade mark protection in China, I was interested to learn that companies who wish to enter China (or those that are already there) need to take particular care in assessing how their product will be pronounced in Chinese (presumably Mandarin).

For example, Pfizer Viagra realized that the common Chinese name was for Viagra was “Mighty Brother”. Pfizer’s delay in applying to register the Mighty Brother mark led to a third party registering the mark before Pfizer was ready, creating significant problems for Pfizer.

China operates a first to file system, so it seems highly sensible to make a Chinese application as soon as you are able.
Of course, language difficulties are not confined, recent EU cases have also highlighted the difficulty in different marks having dissimilar meanings due to language issues.

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