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

Nick Redfearn, head of enforcement at Rouse and a classic car enthusiast, explains the sudden viral appearance of classic car restomod parts from China and the impact of IP in this new trade
Our 2026 rankings for Western Europe, taken with historical data, reveal that some European IP markets hardly change – while others are more fluid
Selina Hinchliffe, head of commercial services at Shakespeare Martineau, reflects on rejecting Cambridge, leading through empathy, and why authenticity matters more than fitting in
US corporates are using the UPC, but much of that work still flows to European boutiques. Last week’s merger, as well as others, could alter that dynamic
Publicly listed Australian group IPH delivered on its promise to profoundly shake up the Canadian market. Four years on, rivals have had time to adapt
IP practitioners debate whether new guidelines will make it more difficult to challenge a patent
Varuni Paranavitane says she is excited to bring ‘rounded expertise’ to the firm, which will have a solicitor in its ranks for the first time
Lawyers adapting to AI-driven recommendations are being pushed to demonstrate expertise publicly rather than simply relying on a polished website
Mid-market businesses looking to establish an online presence need ‘holistic’ brand protection services at an accessible cost, according to partners
Our latest update also includes the latest case filing statistics, and an update on how a transatlantic merger could be a UPC opportunity for the US half of the partnership
Gift this article