Austria: Rendering of accounts for trade mark infringement

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: Rendering of accounts for trade mark infringement

Sponsored by

sonn-400px.png

A hotel in a skiing area known for its bar featuring scantily-clad dancing girls was found to have an infringing trade mark. The lower courts issued an injunction in a first partial judgment. A further partial judgment was made requesting accounts of the turnover earned in connection with the running of the bar and all advertisements made for it. Accounts are the basis for all claims of compensation and damages calculations. In this case, the question was which turnovers should be included. On further appeal to the Austrian Supreme Court, the Court upheld the lower courts' judgments. It ruled on this topic as follows.

One defence was that the order goes too far as it covers the whole year and the bar is only open during the skiing season (five months per year) and closed for the rest of the year. This defence is not applicable when the principal duty is to produce complete accounts. This defence was related to the question of whether laying out the accounts is correct, not the principal duty of a complete disclosure of the full time.

The main defence was that the turnover of the hotel itself should not be included because there is free entrance to the bar as a sales promotion and this is only one of seventeen amenities which are part of an inclusive service for the guests of the hotel. Free entrance to the bar for the customers is therefore not decisive for customers choosing the hotel. However, this defence did not convince the Supreme Court either. It is evident that the infringing trade mark had been used for the promotion of the hotel. Since it cannot be presumed that a business advertises ineffectively and uselessly this defence was refused.

A further defence was that the separate turnover of the independent girls as covered by the judgment cannot practically be known since the owner has no method of extracting any reliable figures or proof from the dancers. The Supreme Court replied that the level of difficulty is irrelevant here. The rendering of accounts in the present case is a right of the infringed, guaranteed expressly by Trademark Law without taking into account substantial difficulties in gathering reliable data or how reasonable it is to do so. Therefore, the infringer also has to make a sincere effort to ascertain the turnover of the independent dancers. They are part of the business of the bar and their turnover has to be calculated.

This decision (4Ob 130/18y) shows that once infringement is clear, the infringer cannot escape full rendering of accounts for all aspects of the infringement. All that can be done is to discuss how the consideration or damages will be calculated and which parts of the accounts have to be considered and to what extent.

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

This year’s most-read stories covered uncertainty at the USPTO, a potential boycott of a major international IP conference, rankings releases, and a contempt of court proceeding
The parties have agreed on a court-guided settlement covering Pantech’s entire SEP portfolio, marking a global first
The introduction of Canada’s patent term adjustment has left practitioners sceptical about its value, with high fees and limited eligibility meaning SMEs could lose out
With the US privacy landscape more fragmented and active than ever and federal legislation stalled, lawyers at Sheppard Mullin explain how states are taking bold steps to define their own regimes
Viji Krishnan of Corsearch unpicks the results of a survey that reveals almost 80% of trademark practitioners believe in a hybrid AI model for trademark clearance and searches
News of Via Licensing Alliance selling its HEVC/VCC pools and a $1.5 million win for Davis Polk were also among the top talking points
The winner of a high-profile bidding war for Warner Bros Discovery may gain a strategic advantage far greater than mere subscriber growth - IP licensing leverage
A vote to be held in 2026 could create Hogan Lovells Cadwalader, a $3.6bn giant with 3,100 lawyers across the Americas, EMEA and Asia Pacific
Varuni Paranavitane of Finnegan and IP counsel Lisa Ribes compare and contrast two recent AI copyright decisions from Germany and the UK
Exclusive in-house data uncovered by Managing IP reveals French firms underperform on providing value equivalent to billing costs and technology use
Gift this article