Austria: Examining the law around bad faith trade marks

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: Examining the law around bad faith trade marks

Sponsored by

sonn-400px.png

Until 2017, it was clear from several decisions of the Austrian Supreme Court that trade marks registered in bad faith were invalid and therefore could be successfully attacked any time and that asserted rights based on them would be rejected as immoral. However, the decisions went further: the mere use of that sign was held to be inadmissible and therefore could be forbidden as such without any other reason.

In a long-lasting series of proceedings about a television programme named Fashion One (European trade mark (EUTM) of defendant) and Fashion Television (EUTM licensed to the defendant) the then plaintiff requested the courts forbid use of the licensed mark Fashion Television for the sole reason that the use of that mark, acquired with the intent to obstruct and hinder the plaintiff, in itself supports a claim for an injunction. The plaintiff based his request on settled case law as indicated above.

In 2017, the Austrian Supreme Court changed its mind and decided in this case that prior case law did not give any reason for an injunction against use of a bad faith trade mark without any further support and that such an injunction does not have a basis in the law. Article 52 paragraph 1 lit b EUTM Regulation as well as the parallel Austrian provision say only that acquiring a registration of a mark in bad faith is forbidden. For example, these provisions do not relate to the derivation of licensed rights. The use of such a mark on the market is independent of acquiring trade mark rights for that mark. This use also does not hinder the plaintiff in any perceivable way. No rights are derived by the mere use of a trade mark registered in bad faith which could be rejected for being immoral and unfair. Hence the old case law was overturned and the complaint rejected.

We now have a second case in which that point of law (is mere use of a trade mark registered in bad faith lawful?) was decided (indirectly) in the same way. In this case, the first instance judge rejected the complaint of the same plaintiff as in the above-mentioned case against the same defendant mentioned above regarding the use of the EUTM Fashion Television. The rejection was based on the above-mentioned decision without any relevant procedure since the situation was clear from the beginning. However, before the decision was rendered, the plaintiff added new grounds. This extension of the case was rejected by the judge. On appeal, the decision was overturned. At such an early stage in the procedure, the first instance judge should have accepted these new grounds in light of the fact that the original ground was not sustainable. The Austrian Supreme Court confirmed this.

It is therefore now settled case law in Austria that the use of a bad faith trade mark is per se not objectionable.

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

As UPC activity continues to drive strategic hiring and expansion, recent rulings have delivered a notable win for Samsung, and further uncertainty in the long-running GSK-Pfizer vaccine battle
The merger of Taylor Wessing’s UK operation with US firm Winston Strawn was a response to a strategic conundrum, its leaders say
Over the past 23 years, LawPlus has expanded from Thailand to Myanmar and built extensive international partnerships. What’s next?
Patrade has turned to experienced IP practitioner and business development leader Anders Isaksson to strengthen its commercial strategy and expand its reach to clients across Scandinavia
Cassie Hill, partner at Mishcon de Reya, discusses rebuilding client relationships after maternity leave and the pressures facing women at a pivotal stage of their career
Matthew Asbell discusses why empathy is important in law, being inspired by diverse workplaces and working on the latest, greatest large language model
The new partners add patent trial depth in high-value technology sectors including semiconductors, software, and cloud computing
From seller vetting and proprietary screening technology to brand collaboration and industry partnerships, Temu explains how its intellectual property enforcement programme combats infringement on its marketplace
A handful of US firms have quietly invested in European patent talent. Recent moves by Baker Botts and K&L Gates suggest that trend may be accelerating
Loke Khoon Tan and Stephanie Yip at Dentons explain what brand owners need to know ahead of January 1 2027, when updates to China’s Trade Mark Law come into force
Gift this article