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Dilution
• DILUTION • VERWÄSSERUNG • URVATTNING DILUTION US Europe Sweden 3 questions Do we have protection against dilution in • the US? • the EU? • Sweden? 3 phases 1) Birth of the dilution theory 2) Acceptance of the dilution theory 3) Meaning of dilution? How to prove dilution? Phase 1 • Frank Schechter • 1927 Harvard Law Review article • The Rational Basis of Trademark Protection Phase 2 Trademark Dilution Revision Act of 2006 • Subject to the principles of equity, the owner of a famous mark that is distinctive, inherently or through acquired distinctiveness, shall be entitled to an injunction against another person who, at any time after the owner's mark has become famous, commences use of a mark or trade name in commerce that is likely to cause dilution by blurring or dilution by tarnishment of the famous mark, regardless of the presence or absence of actual or likely confusion, of competition, or of actual economic injury. ERSTE RICHTLINIE DES RATES 89/104/EEC Artikel 5.2 • Die Mitgliedstaaten können ferner bestimmen, daß es dem Inhaber gestattet ist, Dritten zu verbieten, ohne seine Zustimmung im geschäftlichen Verkehr ein mit der Marke identisches oder ihr ähnliches Zeichen für Waren oder Dienstleistungen zu benutzen, die nicht denen ähnlich sind, für die die Marke eingetragen ist, wenn diese in dem betreffenden Mitgliedstaat bekannt ist und die Benutzung des Zeichens die Unterscheidungskraft oder die Wertschätzung der Marke ohne rechtfertigenden Grund in unlauterer Weise ausnutzt oder beeinträchtigt. The European dilution test • Reputation (bekannt) • Link between trade marks (Verknüpfung) • Unfair advantage or detriment (unlauterer Weise ausnutzt oder beeinträchtigt) • Free-riding Taking unfair advantage of the distinctive character or repute • Tarnishment Detriment to the repute of a trade mark • Dilution (Verwässerung) Detriment to the distinctive character eg Rolls Royce pants, Rolls Royce candy… Phase 3 • Meaning of dilution? • How to prove dilution? – Victor´s Little Secret / Victoria´s Secret (US) – Intel / Intelmark (EU) Victor's Little Secret / Victoria´s Secret Victor's Little Secret / Victoria´s Secret • FTDA does require proof of actual dilution rather than just a likelihood of dilution • The Trademark Dilution Revision Act of 2006 requires only a likelihood of dilution INTEL / INTELMARK (C-252/07) • INTEL • Intel Corporation • founded 1968 by semiconductor pioneers Gordon Moore and Robert Noyce • INTegrated ELectronics • computer-linked goods • microprocessor products (chips) INTEL / INTELMARK (C-252/07) • INTELMARK • CPM United Kingdom Limited • marketing services • telemarketing • INtegrated TELephone MARKeting INTEL / INTELMARK (C-252/07) • The meaning of ”unfair advantage or detriment”!? • The idea of a ”link” between the marks (association)!? • Dilution protection!? INTEL / INTELMARK (C-252/07) • Previous case law regarding dilution: • C-375/97 Judgment 1999-09-14 Motors (Chevy) • C-292/00 Judgment 2003-01-09 • C-102/07 Judgment 2008-04-10 • C-252/07 Judgment 2008-11-27 General Davidoff Adidas Intel INTEL / INTELMARK (C-252/07) • Advocate General Sharpston: ”The protection thus afforded concerns less the link established between a product and its source than the use of the trade mark as a communication tool, carrying a broader marketing message.” (§ 13). INTEL / INTELMARK (C-252/07) ECJ: • whether a use of the later mark takes or would take unfair advantage of, or is or would be detrimental to, the distinctive character or the repute of the earlier mark must be assessed globally, taking into account all factors relevant to the circumstances of the case. • proof that the use of the later mark is or would be detrimental to the distinctive character of the earlier mark requires evidence of a change in the economic behaviour of the average consumer of the goods or services for which the earlier mark was registered consequent on the use of the later mark, or a serious likelihood that such a change will occur in the future. Sweden ABSOLUT In an ABSOLUT World Caselaw • ABSOLUTE • TULOSBA AKDOV • ABSOLUT RENT Thank you for your attention!