It was described as follows:
"A
rectangular stripe consisting of parallel vertical stripes of various
sizes, defined in the colors navy blue, orange, yellow, orange, and navy
blue, arranged in this sequence. This stripe is applied to goods,
generally near seams, hinges, shoulder pads, cuffs, fittings, finishes,
or edges."
The sign was registered in 2006 inter alia for
goods in classes 18 and 25. In 2019, an Italian individual filed an
application for revocation of K-Way’s trade mark claiming non-use.
K-Way
submitted evidence of use with the Cancellation Division of the
European Union Intellectual Property Office (‘EUIPO’). The latter
revoked the contested mark except for ‘outerwear’ and ‘footwear’ in
class 25.
Upon K-Way’s appeal to the EUIPO’s Board of Appeal
(‘BoA’), the trade mark was maintained for ‘suitcases’, ‘wallets’ and
‘backpacks’ in class 18 as well as ‘clothing (excluding outerwear)’ and
‘headgear’ in class 25.
K-Way appealed to the General Court.
The General Court's Decision The General Court dismissed the appeal with the exception of ‘shopping bags’.
Use for all goods sold in single-brand stores K-Way
argued that it operates single-brand stores, in which it only sells its
own goods. These stores show the trade mark at the entrance, e.g. as
follows:
K-Way
contended that this constitutes genuine use for all goods sold in the
store, even if the trade mark was not applied directly to the goods,
their packaging or labels. K-Way referred to the
Celine
judgment of the Court of Justice of the EU (‘CJEU’), according to which
it is not necessary to affix the mark at issue to the goods themselves
to prove genuine use. It is sufficient that a company or shop name is
used in such a way as to create a link with the goods marketed.
After recalling the principles of genuine use, the judges explained the General Court’s
GNC LIVE WELL
decision. It could be read as establishing a general principle that the
use of a trade mark on a single-brand store is sufficient to create a
link with the goods sold in that store (paras. 75 and 76 of that
decision). The judges clarified that the use of the trade mark on the
store in that case was only one factor among others considered in the
assessment of genuine use. The trade mark owner had also submitted other
items of evidence, such as invoices and product packaging showing the
mark.
Therefore, the use of a mark on a store in which only
goods of the trade mark owner are sold is only a contributing factor to
show use of the mark for the goods. Such use does not automatically lead
to the conclusion that consumers create a sufficient link between the
trade mark and the goods sold in the store.
Furthermore, the
judges considered that K-Way used several marks for its goods. This may
prevent consumers from perceiving a link between the use of the mark on
the storefront and the goods marketed in those stores, to which the mark
has not been affixed.
K-Way’s argument that it used the other
marks only for some goods while the contested mark has been used for all
goods, also on packaging and in advertising, was rejected by the Court
because genuine use cannot be proved by means of probabilities or
suppositions, but must be demonstrated by solid and objective evidence
of actual and sufficient use of the trade mark on the market concerned.
Use for shopping bags K-Way had submitted pictures and invoices for shopping bags, the latter not reproducing the trade mark.
The
judges referred to consistent case law and held that invoices are
intended to reproduce the list of products sold, so that they contain
the name of the item concerned, accompanied, where appropriate, by a
reference. It is not necessary that the contested mark or images of the
products bearing the contested mark be reproduced on the invoices.
However,
for such invoices to constitute relevant evidence of use, they must
actually concern those goods and it must be established that the latter
bore the mark or, at least, that the mark was used, in accordance with
its essential function, publicly and externally, for the sale of those
goods to consumers.
The Court found that the invoices and
pictures of shopping bags could be linked to each other because both
bore the same name and reference number. Since the BoA did not accept
genuine use for these goods, the judges annulled the contested decision
to this extent.
Comment The ruling shows that store-sign use does not equal genuine use. While the
Celine and
GNC LIVE WELL
decisions had left room for the idea that storefront use might cover a
wide range of goods, the General Court has now made it clear: that is
only part of the picture. Without product-level evidence – like labels,
packaging or ads – showing the mark in action, even the most stylish
flagship store will not rescue unused trade marks from revocation.
The
shopping bag subplot is equally instructive. The Court treated invoices
and product photos like a matching set: if they can be linked with each
other, they are able to establish genuine use.
The moral of the
story (not just for single-brand store owners) is to keep good records
of use. The most convincing evidence to the EUIPO are invoices in
combination with advertising, catalogues or similar marketing materials
showing the goods with the trade mark and, of course, the notorious link
between these two types of evidence.