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

Judge Alan Albright is to leave his role at the Western District of Texas, and could return to private practice
Stobbs has successfully seen off a contempt of court application filed against the firm and two of its lawyers
After almost a quarter of a century, Marshall Gerstein has a new managing partner
Abbott winning another round against Sinocare and Menarini, and 'long arm' clarification on the UK's position within the UPC, were also among major developments
Maria Peyman, head of IP at Birketts, explains why the firm is adopting a ‘seamless approach’ for clients by integrating two of its practice areas
Matthew Swinn, who leads the firm’s IP practice, discusses why Mallesons is well-placed to remain a major IP force
Lawyers at A&O Shearman analyse developments regarding UPC’s long-arm jurisdiction, including its scope and jurisdictional limits
Michelle Lee discusses reaching milestones at the USPTO, AI’s role in legal work, and how to empower women in tech and IP
Executive chair Matt Dixon, who reveals a new associate hire, says the firm wants to offer a realistic pathway to partnership while avoiding the ‘corporate machine’ route
Mayer Brown’s role in cardiovascular technology dispute reflects how firms are pursuing precedent-setting cases to try and guide AI and patent law
Gift this article