In its decision
H 15/Hecht H 15
(case I ZB 30/25), the German Supreme Court dealt with several core
issues of trade mark law: the relevant period for proof of use in
opposition proceedings, the relevance of pharmaceutical regulation for
defining “medicinal products”, the standard for assessing genuine use
where an “unusual” mark is used together with a company name, and the
concept of independent distinctive position.
Background
In
2012, Hecht Pharma GmbH (“Hecht”) filed for registration of German
trade mark “HECHT H 15” for “food supplements” in class 5.
Gufic
Biosciences Ltd. (“Gufic”) filed an opposition on the basis of its
earlier German trade mark “H 15”, which was registered in 2008, inter
alia, for “medicinal products” in class 5.
Hecht disputed the
genuine use of Gufic’s earlier mark. Gufic claimed that it had used “H
15 Gufic” for an anti-inflammatory Ayurvedic medicinal product for the
treatment of arthritis, osteoarthritis and rheumatoid spondylitis.
The
German Patent and Trade Mark Office (“GPTO”) upheld the opposition.
Hecht’s appeal to the German Patent Court (“GPC”) was unsuccessful, so
they appealed to the German Supreme Court.

The German Supreme Court’s decision The judges upheld the appeal and referred the case back to the GPC.
The Court did not approve the GPC’s finding that Gufic had established genuine use. This issue had to be decided under the
German Trade Mark Act that was in force until 2019 (which was based on the
Trade Mark Directive 2008/95/EC (“TMD 2008”)) because the opposition proceedings commenced in 2012 under the old law.
1. Rolling period of use The
old German Trade Mark Act provided that the opponent had to establish
genuine use for (1) the five-year period prior to the publication of the
registration of the earlier mark and (2) the five-year period prior to
the hearing or, if no hearing is held, the decision of the GPTO or, upon
appeal, the GPC, in both cases (1) and (2) provided that the earlier
mark has been registered for more than five years (Sec. 43(1) German
Trade Mark Act). This last period is also called “rolling period of use”
(“
wandernder Benutzungszeitraum”) because the longer the proceedings take, the further it moves.
Since
the earlier trade mark was registered in 2008 and the contested mark’s
registration was published in 2012, Gufic was not required to establish
genuine use for the five years prior to the contested mark’s
publication.
However, Gufic’s trade mark was registered for more than five years at the hearing before the GPC in November 2024.
The
first interesting question was whether the “rolling period of use” was
in compliance with the TMD 2008. The judges acknowledged that the Court
of Justice of the EU (“CJEU”) held in
Husqvarna that the rolling period of use in German law for a non-use revocation action was not in compliance with Art. 51
EUTMR 2009. The CJEU argued, inter alia, that the revocation of a trade mark may not depend on the duration of the national proceedings.
However,
the German Supreme Court considered that they could maintain the
rolling period of use for opposition proceedings under the TMD 2008.
They found that this directive did not provide rules for opposition
proceedings. Recital 6 allowed Member States to enact their own
procedural rules, including for oppositions. The rolling period of use
was based on Art. 11(2) TMD 2008, which allowed Member States to provide
that oppositions may be rejected if the earlier mark has not been used
for a consecutive period of five years without mentioning the relevant
period.
Thus, TMD 2008 did not harmonize for which five-year period for which genuine use must be established.
The judges acknowledged that the situation is different with respect to the currently applicable
Trade Marke Directive 2015/2436.
It stipulates that proof of use can only be requested in opposition
proceedings for the five years prior to the filing or priority date of
the contested mark (provided that the earlier mark has been registered
for more than five years at that date).
2. Genuine use established? Now that the relevant period was clear, the Court assessed Hecht’s attacks on the GPC’s decision to accept genuine use.
a. Sale to German importer Gufic
sold and shipped its products to a German reseller, who sold them to
German pharmacies but also exported them. The Court deemed the
subsequent export irrelevant for the finding of genuine use. The goods
reached Germany and were objectively capable of creating or preserving a
market share.
b. Illegal import The Court left
open the question whether genuine use can be accepted where the goods
may not be lawfully marketed in Germany. Even though the pharmaceutical
sold by Gufic was not admitted in the EU, they could rely on an
exception under German law and sell it to pharmacies in small
quantities.
c. Use for medicinal products Hecht argued that the GPC wrongly considered the product, for which Gufic used its trade mark, to be a medicinal product.
For the purpose of defining “medicinal product”, the Court referred to Art. 1 Nr. 2 of
Directive 2001/83/EC
and confirmed that Gufic’s good qualifies as a medicinal product by
presentation, i.e. it was presented as having properties for treating or
preventing disease in human beings.
Hecht argued that only
objective criteria may be considered in the assessment whether a good is
a medicinal product under trade mark law. The judges rejected this
argument, holding that this would run counter to the legislator’s
intention in pharmaceutical law. Art. 2(2) of Directive 2001/83/EC
states that in cases of doubt where a product, taking into account all
its characteristics, could fall under the definition of a “medicinal
product” as well as under the definition of a product regulated by other
EU legislation, Directive 2001/83/EC shall apply. This reconciles the
requirements of legal certainty for economic operators with the
requirements of quality, safety and efficacy of medicinal products for
human use.
d. Use of “H 15” as “H 15 Gufic” The
main issue of the decision was whether the following use constitutes
genuine use or whether the earlier trade mark’s distinctive character
was altered:
The judges recalled that trade marks need not be used in isolation.
Consumers are accustomed to two marks being used on the same product. A
composite sign in which one part is a company name is likely to be
perceived as consisting of two separate trade marks.
The Court
confirmed the GPC’s finding that “Gufic” will be perceived as a company
name. This was clear from the indication of the manufacturer on the
packaging.
However, the judges found that the GPC applied too
low of a threshold for accepting that “H 15” was understood as a
separate trade mark. The lower court merely argued that “H 15” will be
perceived as “an indication of the product” or “a product name”. Such
findings are not, according to the judges, sufficient to conclude that
“H 15” functions as an indication of commercial origin. Due to the
character of the sign (a single letter followed by a double-digit
number), it is conceivable that the public merely understands it as the
name of the product within the manufacturer’s product range and only
sees “Gufic” as an indication of commercial origin.
Likewise,
the judges were not convinced by the argument that “H 15” is distinctive
and not used in a descriptive manner. This does not allow the
conclusion that it is perceived as an indication of origin.
Further,
the fact that consumers are used to secondary marks in the
pharmaceutical sector was, in itself, not sufficient to justify the
finding that “H 15” was perceived as a separate indication of commercial
origin.
For this reason, the Court annulled the GPC’s decision and referred the case back.
3. Sailing instructions As the Court frequently does, it provided guidelines for the GPC's new decision (commonly called “sailing instructions”).
If the GPC considered genuine use to be established, the judges agreed that a likelihood of confusion existed.
The goods “food supplements” of the contested mark were of average similarity to “medicinal products” of the earlier mark.
The distinctiveness of the earlier mark was slightly below average.
The
judges also confirmed the finding of indirect confusion between the
trade marks because “H 15” retained an independent distinctive role in
the contested sign.
Hecht argued that the CJEU required identical goods and services for a finding of an independent distinctive role in
Medion (IPKat
here).
The judges disagreed. The CJEU’s reasoning was deemed general in
nature. The owner of an earlier mark would lose its exclusive right if
the earlier mark could simply be combined with a later well-known mark
or company name and not constitute infringement. Therefore, it is
sufficient for a likelihood of confusion that the public, on account of
the independent distinctive role retained by the earlier mark in the
later mark, also associates the proprietor of that mark with the origin
of the goods or services covered by the composite later mark.
Further, the Court interpreted
BGW (case C-20/14) in a way that the CJEU confirmed an independent distinctive role where the goods and services are only similar.
Comment The key takeaways from the decision:
1.
Once goods are placed on the market in the territory of protection, it
does not matter what happens to them. They can be exported out of that
territory right away and never reach the end-consumer.
2. The
regulatory classification of a product under EU norms can be decisive in
the assessment of whether a specific good is covered by the
specification of the trade mark. This is in line with the case law of
the EU courts. While regulatory provisions are generally not decisive
for the interpretation of the Nice classification and terms in the list
of goods and services, they are relevant for classifying the actually
used goods (e.g. case
T-346/21 at paras. 95 et seq.).
3.
Registration does not guarantee that a sign will function as a trade
mark in practice, especially where it looks like a mere product code.
4. The concept of idependent distinctive role also applies where the goods and services are only similar.