Using the ® Symbol in Countries Where it is Unregistered

In the UK, the Trade Marks Act 1994 makes it an offence to falsely represent a trademark as registered.

95 - Falsely representing trade mark as registered

(1) It is an offence for a person—

(a) falsely to represent that a mark is a registered trade mark, or

(b) to make a false representation as to the goods or services for which a trade mark is registered knowing or having reason to believe that the representation is false.

The ® symbol is used widely as a warning sign to others that the trademark is registered. There is generally no legal requirement for proprietors to use these symbols to indicate the mark is registered. Despite this, criminal liability does exist for anyone who uses any word or symbol to suggest a mark is registered and it is not.

As a result of the ever increasing globalisation of the market two problems may arise. Firstly, how does the United Kingdom treat those goods with ® marks which relate to overseas registration, but not a UK one? Secondly, how would a UK product with an ® symbol relating to a UK registration avoid trouble in an international market, in particular in the European Community?

In terms of the first scenario, section 95(2) (b) of the Act does lay out some guidance in which proprietors may follow.

(2)For the purposes of this section, the use in the United Kingdom in relation to a trade mark—

(b) of any other word or symbol importing a reference (express or implied) to registration,

shall be deemed to be a representation as to registration under this Act unless it is shown that the reference is to registration elsewhere than in the United Kingdom and that the trade mark is in fact so registered for the goods or services in question.

In practice, if an international product was sold within the UK bearing an ® symbol for the international registration but did not have a UK registration, it would be in breach of s.95. However, if there is some indication that the ® actually refers to its international registration part (2)(b) allows for this. Such indication may include, for example, “trademark registered in France under registration number...” within the product's accompanying literature.

The rules become more complicated when UK entities wish to export goods with only UK registration overseas. In order to be sure, the proprietor would need to consult the registration laws in each territory they wish to trade in. For the purpose of this article, the EU will be the main focus.

Historically, in the EU trademarks were thought to impede the free movement of goods, freedom to provide services and distort competition within the Common Market. The EC Trade Mark Directive tried to harmonise the general conditions for obtaining and continuing to hold a registered trademark. However, member states have the discretion to decide whether or not to adopt certain rules of the Directive e.g. which of the optional grounds for refusing a registration or declaring a mark invalid. The use of the ® symbol in the European Union is not explicitly regulated by trademark legislation i.e. there is no s.95 equivalent. Despite this, it is worth noting other EC incentives that may be affected by the use of the symbol.

In general, Directive 85/450/EEC (Sept 1984) and Directive 2006/114EC (Dec 2006) deal with misleading advertising. Arguably, the incorrect use of ® could constitute as misleading advertising. The intellectual property rights associated with an advertisement needs to exist in every country the advertisement is made in order for it not to be considered misleading. Misleading advertising can also amount to unfair competition.

If a product with an unwarranted use of ® amounted to unfair competition, it could result in the imposition of restrictions on those goods. This could potentially conflict with the EU concept of Free Movement of Goods – guaranteed by Art 28 of the EC Treaty. So, a situation might arise where products are distributed to various member states but trademark protection only exists in certain member states were the products are sold.

The German Supreme Court referred this point to the European Court of Justice in Pall Corp. v P.J. Dahlhausen & Co. 1990 (C-238/89) . The ECJ held that in this context the free movement of goods will prevail. The Court took the view that national provisions could have the equivalent effect to a quantitative restriction. Since this judgement trademark owners do not need to worry about injunctive relief if they engage in inter-Community trade but do not have trademark protection in every member state.

Nevertheless, problems may still arise where there is no inter Community trade e.g. where goods are imported into a member state from outside the EU – this would mean that rules on the free movement of goods in the EC Treaty would not apply. Here, lack of trademark protection for the respective member state may still be unfair competition under national rules, in addition to a probable infringement of that member state’s trademark laws.

In conclusion, inter EU trade seems more flexible when using the ® logo provided it is protected in at least some member states. However, this is not the same for goods sold only domestically in one country or imported from outside the EU into an EU member state. As an extra precaution, proprietors would be wise to follow the UK model and include a reference in accompanying product literature which clearly indicates the country to which the ® symbol relates.

By Nicola Mallon

Should I register my business name as a trademark?

If you are already using a business name then, generally, the only way in which you can protect that name is to register it as a trademark. Many people assume that by simply registering a company name with Companies House (through the formation of a company) or registering a domain name with a registrar (through the formation of a domain name) that will be sufficient protection. Unfortunately, it is not enough.

You can only obtain legal exclusivity through registration of your trademark. If you choose not to protect your trademarks (which can include company names and domain names) by registration you run the risk that someone else will register the name. If this happens all of your hard work in establishing a brand and goodwill may be diminished (or even lost entirely).

Similarly, your name may already belong to someone else (as a registered trademark) without you knowing it. If that is the case then you will run the risk of generating goodwill in a trademark that you do not even own. Have you ever checked to see whether you are infringing an existing registered trademark? The last thing you would want is to be sued for trademark infringement. Not only could this expose you to unwelcome legal fees and court costs but you might also be saddled with the cost of having to change your company name and rebrand your goods and services.

What is a Trademark?

A trademark is a sign which enables you to distinguish your goods and services from those of other traders for the purposes of promotion. A sign can include words, logos, drawings (pictures) and even a sound or a combination of these things.

Trademarks differ from copyright (which protects artistic or creative works) or patents (which protects inventions). In contrast to the protection offered by copyright and patents, your trademark registration can last as long as you wish, subject to your renewing it every 10 years.

A trademark can often be one of the most valuable assets your business has, particularly where you trade on a reputation or where your goods are marketed under a particular brand.

There are two types of trademarks:

1. An Unregistered Trademark

You can devise and use a trademark without registering it. You can even claim certain rights of ownership over your unregistered trademark but in the event someone else began to use your mark without your permission you would have a potential problem in protecting your ownership.

This is because one of the the difficulties faced by you as an owner of an unregistered mark is that to prevent unauthorised use you would first need to establish that your mark had been used by your organisation as a bona fide trading entity and that it had accrued sufficient goodwill.

2. A Registered Trademark

As a holder of a registered trademark you don't need to establish any of that to protect your mark. The principal advantages of holding a registered trademark are that:

• you will have the right to take legal action against others who use your trademark (or a confusingly similar mark) in relation to the same or similar goods and services as your trademark without your permission
• you can protect your trademark before your product is even put on the market (although you risk having the mark revoked if it is not used for five years);
• there is a presumption that the registration is valid and therefore it offers you greater protection against a claim of trademark infringement (although you should note that the validity is not guaranteed because the validity of a trademark is always open to challenge); and
• registration reduces the possibility of disputes as it confers on the owner increased certainty, because the registration determines the extent of the goods or services to be protected by that particular trademark.

For more information on trademarks or to speak to a trademark specialist, visit our site.