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

Cookies Settings

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

On a recent trip to the French capital, we learned that the UPC is squeezing domestic litigation while firms are chasing senior talent, experimenting with AI and considering new ways of organising their practices
Daniel Law says a string of lateral hires and broader expansion plans will strengthen its position to capitalise on Brazil’s burgeoning IP and patent litigation market
Jason Raeburn’s arrival will expand the firm’s London footprint in AI, copyright and tech disputes
The firm is shaping its AI strategy around partnerships with Harvey and Legora alongside internally developed tools from its legal technology company, Eltemate
A dispute Down Under shows why trademark lawyers cannot afford to wait on the sidelines when a rival brand gathers momentum
The Third Circuit’s decision in Thomson Reuters v ROSS marks the first appellate-level decision addressing AI and fair use, prompting copyright counsel to consider arguments around potential licensing markets
Injunctions for HandsFree Labs and Align Technology come as the Court of Appeal warns that busy teams must have the staffing and resources to meet UPC deadlines
The chief technology officer remit, which has been created as the firm is building its litigation team, will include expanding the use of AI in patent and legal work and automating manual processes
Former Hoyng Rokh Moneiger partner Laura Alonso, who brought her team to ECIJA in March, discusses plans to expand further and why ECIJA’s ‘IP DNA’ is helping broaden her work
Amita Haylock discusses building an integrated Asia practice as clients increasingly demand that firms combine IP, technology and data expertise
Gift this article