Austria: When is ® used legitimately and illegitimately?

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Austria: When is ® used legitimately and illegitimately?

Sponsored by

sonn-400px.png

An inventor invented a system for drainage of walls. He was managing director for several years of a group of firms (the ATG-Group), the business of which was the application of that system. The plaintiff is the Austrian firm of the ATG-Group.

The inventor worked for the plaintiff, where he trained, foremost, its commercial agents among them the defendant. The inventor also registered several word and device trademarks for the word ATG together with additional wording in a design. The ATG-Group was a licensee for these trademarks but when the inventor had a stroke they stopped paying the licence fee and consequently the licence was cancelled.

Shortly after that, the defendant founded his own company in Austria – a business for drainage of walls using the identical system as taught when he was one of ATG's commercial agents. The inventor had meanwhile transferred his trademarks to his wife who granted an exclusive licence for Austria to the defendant. In advertisements, the defendant used words like "the original ATG® in Austria", "the original ATG® method" or "the original ATG® 10-years-guarantee".

There were several other unfair competition topics in this case but here we are only concerned about the borderline between legitimate and illegitimate use of ® – the sign that indicates that what is marked is a registered trademark and therefore a protected right for its owner.

The question of whether the use of ® is legitimate or not is a question of whether that statement is misleading. To ascertain this, the following three questions must be answered:

  • How will this statement be understood by interested persons?

  • Does this understanding coincide with the facts?

  • Is its use liable to influence commercial decisions?

The Austrian Supreme Court examined the case according to its case law. In one case ® was attached to a descriptive word (ART-DECO) in a combined word and device trademark. Since the protection of a part of a combined mark presupposes its own distinguishing ability, here, the defendant misleads about the breadth of protection in suggesting ART-DECO articles can only be bought from him. In consequence thereof, ® used for a part of a combined mark is not misleading if this part is also protected on its own against unauthorised use as the Supreme Court ruled in a further decision. The question to be answered is whether, in the specific case, the indication of a legal protection could lead to the wrong idea of superior quality of the goods or services.

In the case described above, it is clear that the word mark itself is not registered as a trademark. The defendant uses ® to campaign against the plaintiff by stressing its "original ATG® method" although the plaintiff has used this method very much longer. That shows that here ® is used to indicate an exclusivity of its services which is untrue. The use of ATG® suggests that the defendant is the only authorised seller of that specific method. Such an idea of exclusivity can influence interested persons to consider the offer positively. Hence this sort of use of ® in the described way must be confirmed as misleading and therefore must be forbidden.

sonn.jpg

Helmut Sonn

SONN & PARTNER Patentanwälte

Riemergasse 14

A-1010 Vienna, Austria

Tel: +43 1 512 84 05

Fax: +43 1 512 98 05

office@sonn.at

www.sonn.at

more from across site and SHARED ros bottom lb

More from across our site

Monetisation is standing at the forefront of patent development, and one firm says AI is increasingly being deployed
Data centres are being built across the US, prompting patent disputes, but Texas’s thriving tech industry and patent-ready courts make the state particularly ‘ripe’ for litigation
Carpmaels & Ransford is set to bolster its UK attorney team with the appointment of Simmons & Simmons’s head of IP in the UK
Updates on Nokia’s licensing strides and a surge in patent activity around battery recycling in Australia were also among the top talking points
To mark International Day Against Child Labour, Matteo Amerio at Corsearch says the people inside businesses who can identify counterfeiting risks must be given the tools and authority to act
With genuine equity at IP firms becoming rarer, securing partnership is harder than ever, but increased transparency is also making climbing the ladder more predictable
Yossi Sivan explains how Israeli judgment is a pro-brand owner departure from the norm and why it sends a strong message that corporate structures are not always a shield
Halim Shehadeh, group CEO of IP firm CWB, says that in the rush to discuss what AI can do, IP firms are overlooking the more important question of whether they are ready
Caitlin Heard, who formally joined the firm from CMS last month, says she is excited by the ‘energy’ of the London office
Ranjna Mehta-Dutt, who moved to Chadha & Chadha after 25 years at Remfry & Sagar, says the firm plans to expand its life sciences practice through targeted recruitment and dedicated teams for bigger clients
Gift this article