Showing posts with label National. Show all posts
Showing posts with label National. Show all posts

2 August 2013

'Fast track' opposition procedure

The UK is planning on introducing a 'fast track' opposition procedure for trade marks.

'Fast track'

It is designed specifically with SMEs in mind and is evidence of the UK IPO's proactive efforts to help these businesses. Their outreach programme sees them regularly at business conferences and seminars as speakers and/or exhibitors. They are also approachable (with restrictions on the advice they can give) when it comes to "DIY" applicants and a large number of UK trade mark applications are self-filed.

SMEs tend to like (in all areas of their business) - and I speak from my own experiences as a business owner here - fixed indications of costs as much as possible. I believe most can handle a scale, e.g. from £x to £y. Transparency of costs is important to them. The IPO identified that the current opposition process can be unwieldy with uncertain cost outcomes and less than predictable timelines. The 'fast track' procedure will be designed to bring more certainty to the table.

OHIM (and WIPO) also have sections for SME's (here and here), but perhaps a more extensive role in engaging with SMEs will/should/must fall more within the duties of national IPOs. It is possible to envisage a future where national applications are predominantly filed by local SMEs/start-ups with the Community Trade Mark being the preferred vehicle for larger businesses; the ONEL case may also have a bearing on this. Of course, trade mark needs are determined by the nature of the products, services and markets so this is a bit of a simplistic view meant as food for thought. Larger companies will continue to use national routes when there is a purely local trade mark need or to form a less risky basis to a Madrid application, as examples, and SMEs will have reasons for filing Community Trade Marks as they do for filing in other foreign jurisdictions.

Trade Mark Watching

A challenge faced by some SMEs - particularly those that represent themselves but includes others that show reluctance to spend the additional money - is with trade mark watching. Many of these SMEs will not have set up a watching service. Owners of UK national trade marks will receive notifications from the IPO when they search subsequent applications. These may not be as extensive as a commercial watching service, but it should catch identical and near identical marks. With an SME on a limited budget in mind, it's free. Trade mark professionals can argue that the IPO's notifications are not sufficient, but the free aspect can represent value to many SMEs and we tend to have different personal definitions of "value".

What this does overlook though is Community Trade Marks. An owner of a UK national registration - or any other national registration in an EU member state (including Ireland, Sweden and those others still with relative grounds examination) - will not get notified of any Community Trade Marks even if for an identical mark with identical goods or services. If they have no watching service set up how will they find out about such a mark? If you've ever tried downloading the CTM Bulletin, published on-line every working day, then you'll know that conducting your own checks is not particularly realistic. Identical searches can be conducted periodically but you would have to remember to do them.

Nevertheless, OHIM do conduct searches - much like the UK IPO - of their own Community Trade Mark Register only and they too send notifications to the owners of these earlier marks. I understand they are looking to abolish these (this is perhaps evidence of this), but arguably it could be better to extend them. How?

Extend them by allowing owners of national registrations to notify OHIM of their rights. There could be a mechanism within TMView for doing this (so sorry owners of Greek national registrations until your country is on board you'd be ruled out). It would not need to cost anything as it would all be done on-line. It would be just as easy for OHIM to do their checks through TMView (which I imagine could easily be specially adapted for this purpose) as it is to do them on just their own Register.

Representatives could add their clients marks to this system pro-actively, particularly when they have been unable to convince a client of the merits of a watching service. This may then still give them access to avenues of possible opposition work.

OHIM may consider this as a way of helping SMEs, start-ups and those with cost constraints. It is not something national Offices can set up so while they may take the lead in meeting and educating many SMEs in their respective countries, this sort of initiative would need to be led by OHIM.

I do not believe the searches conducted are as comprehensive as a trade mark watch performed by commercial companies and I am not suggesting they are an alternative to having a proper watch in place. However, aside from cost pressures for SMEs, IPOs are not in a position to refer trade mark owners to specialist watching companies and SMEs may be reluctant to go to companies they do not know.

I should mention that the Danish Patent and Trademark Office provides a trade mark watching service as do their Swedish counterparts (neither of which are particularly cheap, I may add) but most offices do not; the UK Office has moved away from providing non-statutory, commercial services.

In conclusion, improvements to processes that make them quicker should be welcomed (when quality does not go down), but with national and Community Trade Marks working in parallel more could be done to ensure awareness if not alignment. It could be in the remit of the Convergence programme and Cooperation Fund to undertake some work in this area. National offices should bring such agenda items to the table. It's all well and good that SME owners of UK registrations can cost-effectively and quickly oppose conflicting UK applications but helping them ensure conflicting Community Trade Mark applications do not escape their radars is something that could be better addressed by the authorities.

22 May 2012

Seniority Tool from OHIM

In addition to their TMView and EuroClass projects, OHIM is also heading up a cooperation tool with EU National Offices surrounding seniority.

As a quick briefing to those outside of the EU and not completely familiar with the concept of seniority, this allows earlier registrations in EU member states to be 'packaged' into a Community Trade Mark. The national registrations can then be allowed to lapse and renewal fees can be saved; significant savings can be achieved if there are a number of registrations across EU member states.

Named the 'Seniority Tool' this has an aim of harmonised seniority databases. It is not particularly well publicised so far and only 15 National Offices (out of 25) are participating at this moment in time: Benelux, Bulgaria, the Czech Republic, Estonia, France, Greece, Hungary, Ireland, Lithuania, Portugal, Romania, Slovakia, Slovenia, Sweden and the United Kingdom. The non-participation of Germany, Italy, Poland and Spain is particularly noticeable.

OHIM's literature on the Seniority Tool states:

"Several national offices and other national administrations such as enforcement authorities often treat earlier trade marks as 'expired' or 'cancelled', even when seniority has been claimed under the CTM Regulation for that mark. To better comply with Directive 2008/95/EC, EU national offices need to update their databases to include information regarding seniority. By harmonising the seniority information among national offices, the Seniority Tool will help better achieve this goal effectively."

Seniority has been used apprehensively by practitioners, and while the absence of case law will continue to make many nervous at relying upon it, having seniority information on national databases in addition to the OHIM database should add some confidence to the concept.

According to OHIM, four of the participating National Offices, namely, the Czech Republic, Hungary, Ireland and Portugal have implemented the seniority tool into their Office website so I've checked out examples in the latter two databases to see how this works.

Unfortunately, Irish Registration No. 94544 for HEINEKEN shows as 'Removed' and no seniority information is referred to in the database, not even in the 'Notings' field. Not the most encouraging of starts and we must hope that the use of the word "implemented" by OHIM means "implementation in progress" and not "implementation completed".

For Portuguese Registration No. 148893 VIMTO (which I cannot link to) we do have a status of "REGISTRATION LAPSED - Seniority claimed for CTM" so here we have an example of how the tool is meant to work. I could anticipate there may be a need for some education of authorities here to ensure they look beyond the words "REGISTRATION LAPSED" when checking a registration's status.

In the United Kingdom - yet to implement this tool - where relative grounds examination is not performed, the Office does nevertheless notify owners of national marks should a potentially similar later application be advertised for opposition purposes. Conversely, they do not, as a matter of course, notify owners of earlier Community Trade Marks. It will be interesting to note if they may end up sending out notifications to owners of national registrations which have lapsed but are subject to a claim to seniority. I would anticipate not, but the underlying intention in such scenario is to keep the national registration and the benefits this entails (albeit within a CTM to avoid duplication and excess renewal fees).

OHIM continue to invest in tools that fit their name of being an "Office for Harmonisation" although let's hope this one does not prove to be a white elephant when many could prefer the continued (and rapid) development of TMView and EuroClass.

11 March 2012

Where's the value in Europe Part 2‏

Like a good DJ, I do requests (received from my last blog). I will now explore the value of a trade mark registration based on the size of a country's economy.

Any of these comparisons can, of course, result in "lies, damned lies, and statistics". The parameters of this mini-study have been comparing a country's official fee for filing a trade mark application with its economic clout. The latter is harder to define but I've used a country's gross domestic product at purchasing power parity ("GDP (PPP)"). Some countries are relatively wealthy but with higher costs of living resulting in less purchasing power. To most brand holders, I would suggest PPP is important - whilst most want their brand to be an indispensable part of a consumer's life (e.g. Apple, Coca-Cola), most products are not absolute necessities so when money is tighter, people concentrate on essentials (although, of course, these can also be branded).

The cost of a trade mark application (in one class) divided by $billion GDP (PPP) based on International Monetary Fund data from 2011 would work out as follows for the EU:

European Union   €0.06
Spain   €0.08
United Kingdom   €0.09
France   €0.09
Germany   €0.10
Italy   €0.10
Benelux   €0.21
Poland   €0.36
Sweden   €0.45
Portugal   €0.47
Greece   €0.70
Czech Republic   €0.73
Romania   €0.76
Austria   €1.02
Finland   €1.08
Slovakia   €1.31
Ireland   €1.36
Hungary   €1.42
Denmark   €1.52
Lithuania   €2.28
Bulgaria   €3.23
Slovenia   €4.24
Cyprus   €4.32
Latvia   €5.17
Estonia   €6.88
Malta   €10.68

No surprise that the EU comes out on top, but what could be an interesting statistic is that the original six members (France, Germany (West Germany at the time), Italy and the three Benelux countries) plus the UK and Spain represent over 75% of the GDP (PPP) of the EU. Filing in these six jurisdictions separately costs just over a third more than filing a Community Trade Mark application. For sure, there could be some agent fees on top of these amounts but there is less chance of oppositions and should there be any they could be fought independently with no bearing on the other countries. This is clearly looking at things quite simplistically but it offers food for thought.

I have kept the figures at one class as I think this is relevant to all trade mark owners. The EU's "three classes for the price of one" approach is not a huge benefit to all and, in any case, it does seem there is some desire out there for them to change this as the Register becomes more crowded.

There is value in Europe, although the jurisdiction offering the best value compared to GDP (PPP) is China with a comparable figure of €0.01. The US also offers the same value if TEAS Plus can be used and India's figure sits at €0.02 and so is also cheaper.

Other key jurisdictions are as follows:

Japan   €0.11
Mexico   €0.11
Canada   €0.14
Brazil   €0.23
Russia   €0.28
Australia   €0.42

If we look at some other known expensive countries:

Saudi Arabia €1.62
Belarus €4.33
United Arab Emirates €5.59
Turkmenistan €8.30
Iceland €12.08
Uzbekistan €14.39

Bear a thought for tiny and remote Tuvalu - where its .tv domain name Registry makes a significant contribution to its GDP - where the comparable figure is €6756.76! We file trade mark applications directly with the Tuvaluan Trade Marks Office although, unlike its domain name counterpart, it does not receive too many applications.

8 March 2012

Where's the value in Europe?

We know what great value the CTM provides to European Union wide trade mark protection. But where do the other member states sit in comparison?

Clearly, IP Offices have operational costs and it is generally regarded that they should be self-funded by their official fees yet at the same time this unique European situation sees them competing with OHIM. (You could argue that the Secretary of State Trademark Departments are in competition with the USPTO in the United States, but I don't feel this is quite the same comparison.)

I will base a definition of "value" on a country's official fee and its population. The table below represents a one-class trade mark filing and it should not be surprising that the largest countries provide the best value with the eight most populated EU countries immediately following OHIM. Both Spain and Italy present excellent value in covering their national jurisdictions although value is relative when it comes to Italy given the length of time (a few years) it takes for an application to mature to registration.

Country
Official Fee (€)
Population
Price per million of population (€)
European Union
900
502672151
1.79
Spain
118
47150819
2.50
Italy
173.72
60397353
2.88
France
200
64709480
3.09
United Kingdom
205
62353795
3.29
Germany
300
81757595
3.67
Poland
279
38163895
7.31
Benelux
240
27906526
8.60
Romania
200
21466174
9.32
Portugal
116.61
10636979
10.96
Sweden
170
9347899
18.19
Czech Republic
200
10512397
19.03
Greece
216
11125179
19.42
Hungary
278
10013628
27.76
Slovakia
166
5424057
30.60
Finland
215
5350475
40.18
Lithuania
140
3329227
42.05
Austria
359
8372930
42.88
Bulgaria
328
7576751
43.29
Ireland
247
4467854
55.28
Denmark
317
5547088
57.15
Cyprus ᵅ
102.52
801851
127.85
Latvia
179
2248961
79.59
Slovenia
250
2054119
121.71
Estonia
185.33
1340274
138.28
Malta
116.47
416333
279.75
ᵅ excludes northern part of Cyprus

When it comes to applications in three classes, the picture changes a little. We make this comparison as some EU National Offices, like the OHIM, have a basic official fee including up to three classes.

Country
Official Fee (€)
Population
Price per million of population (€)
European Union
900
502672151
1.79
France
200
64709480
3.09
Germany
300
81757595
3.67
Italy
241.72
60397353
4.00
United Kingdom
325
62353795
5.21
Spain
270
47150819
5.73
Benelux
240
27906526
8.60
Poland
509
38163895
13.34
Romania
300
21466174
13.98
Portugal
177.45
10636979
16.68
Czech Republic
200
10512397
19.03
Greece
276
11125179
24.81
Hungary
278
10013628
27.76
Slovakia
166
5424057
30.60
Sweden
329
9347899
35.20
Finland
215
5350475
40.18
Austria
359
8372930
42.88
Bulgaria
328
7576751
43.29
Denmark
317
5547088
57.15
Lithuania
210
3329227
63.08
Ireland
417
4467854
93.33
Latvia
237
2248961
105.38
Slovenia
250
2054119
121.71
Estonia
274.79
1340274
205.03
Cyprus ᵅ
307.56
801851
383.56
Malta
349.41
416333
839.27
ᵅ excludes northern part of Cyprus

You may note that not all EU countries use the Euro so there has been some exchange rate conversions for some official fees. Please forgive any errors in my maths too! Some of the data sources I have used may contain inaccuracies.

The tables do not take into account professional fees which can vary although Europe is becoming fairly aligned. Please don't misconstrue this comment as there can, of course, be some large differences between firms but, generally speaking, they are not as wide as they could be considering this is a block of over 500 million people.

Austria, Denmark and Ireland are standouts for me in terms of being expensive especially with most agents being based in the respective capitals. As beautiful as Vienna, Copenhagen and Dublin are, none are particularly cheap and overheads can be high.

The same can be said for Paris and London, but France and the UK arguably offer some of the best value (outside of OHIM) because of the fair number of direct applicants. I cannot comment for the French INPI so much but the UK IPO is very geared towards assisting "Do-It-Yourself" applicants. Also whilst Paris and London are home to the majority of French and British IP firms, provincial firms are not insubstantial in number.

Foreign trade mark owners will continue to gravitate towards the Community Trade Mark but national routes will continue to offer a less expensive alternative for local applicants who maintain national client bases and who are yet to be able to exploit the Common Market.

However, as the CTM Register, in particular, becomes cluttered some trade mark owners may look to register in key national markets separately where opposition rates are far lower and whilst searching the EU is expensive and time-consuming. I am almost certain not every CTM owner has a comprehensive watch in place for all Trade Mark Registers in the EU.