The Court of Justice of the European Union (‘CJEU’) has once again
been asked to clarify the contours of design protection under the
Community Design Regulation (‘CDR’; now
EU Design Regulation), this time in relation to one of the most famous modular products in the world: the LEGO bricks. In its recent decision in
LEGO
(C-211/24), the CJEU confirmed that LEGO bricks do not benefit from any
special treatment under design law - despite the ‘LEGO exception’ in
Art. 8(3) CDR. The Court’s reasoning not only confirms the standard
applicable to the informed user when assessing the scope of protection
but also offers helpful guidance on the interpretation of ‘special
reasons’ under Art. 89 CDR, a provision that allows national courts, in
exceptional cases, to refrain from granting enforcement measures.
Background LEGO
A/S (‘LEGO’) owns the following registered Community designs (‘RCD’)
for ‘building blocks from a toy building set’ in Locarno class 21.01:
- RCD no.
001950981-0001 containing, inter alia, the following view:
The
defendant, Pozitív Energiaforrás Kft. (‘Pozitív Energiaforrás’), sought
to import toy building sets into Hungary, which contained, amongst
others, the following parts:
The
National Tax and Customs Administration of Hungary seized the sets
because of a potential infringement of LEGO’s design rights. LEGO
brought an infringement action against Pozitív Energiaforrás before a
Hungarian court, which referred several questions to the CJEU:
1.
Must Art. 10 CDR be interpreted as meaning that the scope of the
protection conferred by a Community design under Art. 8(3) CDR must be
assessed on the basis of the perception of an informed user who,
possessing technical knowledge similar to that which may be expected of a
sectoral expert, examines the design concerned down to the smallest
detail and whose overall impression is based primarily on technical
considerations?
2. The second question relates to the
interpretation of the term ‘special reasons’ for not ordering measures
against the infringement in Art. 89 CDR. The potentially design
infringing building blocks of Pozitív Energiaforrás were part of sets
with other non-infringing blocks. Enforcement measures must be fair,
equitable, proportionate and avoid the creation of legitimate barriers
to trade (
Art. 3 Enforcement Directive).
Therefore, the referring court wondered whether it may dismiss the
infringement claim in part or even entirely, in particular regarding
LEGO’s request to prohibit Pozitív Energiaforrás from importing the toy
building sets into Hungary.
The CJEU’s decision First question The
judges recalled that, according to Art. 10 CDR the scope of protection
conferred by an EU design shall include any design which does not
produce on the informed user a different overall impression. This
provision is also applicable to designs protected by virtue of Art. 8(3)
CDR, such as the LEGO blocks.
Likewise, the concept of
‘informed user’ has to be interpreted uniformly throughout the CDR. This
user is particularly observant, knows the various designs in the sector
concerned and the usual design features to a certain degree. The
informed user has a relatively high degree of attention when using the
designs. The level of attention may vary according to the sector
concerned but not simply because a design under Art. 8(3) CDR is
concerned. This provision does not require taking a specialist with
detailed technical expertise as the yardstick. Furthermore, it does not
allow to consider that the overall impression produced on the informed
user is formed primarily by technical considerations. In design law,
appearance is the decisive factor.
Similarly, the ‘degree of
freedom of the designer in developing his design’ under Art. 10(2) CDR
must also be interpreted uniformly. This means that the more the
designer’s freedom is restricted, the more likely it is that minor
differences between two designs will produce a different overall
impression on the informed user. Conversely, the greater the designer’s
freedom, the less likely minor differences between the designs will
produce a different overall impression. A restriction of the designer’s
freedom, because a part of the product is solely dictated by the
technical function, may result in the finding that minor differences
between the designs create a different overall impression.
The
only special treatment that modular systems like the LEGO bricks enjoy
is that the features of appearance that allow interconnection (protected
by Art. 8(3) CDR) must, unlike connecting features of non-modular
system referred to in Art. 8(2) CDR, be taken into consideration when
assessing the ‘overall impression’. The judges concluded:
"Therefore,
the presence, in the Community design concerned, of interconnecting
components protected by Article 8(3) [CDR] may operate against a finding
of a different overall impression, within the meaning of that Article
10, so that, where there are no sufficiently significant differences in
the overall appearance of the designs at issue, the existence of
connection points that have the same form and dimensions, for the
purposes of the assembly or connection of mutually interchangeable
products within a modular system, is capable of precluding such a
finding."
The Court backed up this finding by relying on
Recital 7 of the CDR stating that the purpose of the CDR is to encourage
innovation and the development of new products. According to Recital 11
CDR, mechanical fittings of modular products may constitute an
important element of the innovative characteristics of modular products
and present a major marketing asset.
For these reasons, the CJEU responded to the first question:
"Article
10 of Regulation No 6/2002 must be interpreted as meaning that the
scope of protection of a design under Article 8(3) of that regulation
must be assessed by reference to the overall impression produced by that
design on an informed user who, without being a designer or a technical
expert, knows the various designs which exist in the sector concerned,
possesses a certain degree of knowledge with regard to the features
which those designs normally include and, as a result of his or her
interest in the products concerned, shows a relatively high level of
attention when he or she uses them as components of the modular system
of which they form part, and not on a user who, possessing technical
knowledge similar to that which may be expected of a sectoral expert,
examines the design concerned down to the smallest detail and whose
overall impression is based primarily on technical considerations."
Second question As
regards the interpretation of ‘special reasons’ in Art. 89 CDR, the
judges held that they must be interpreted uniformly and strictly on the
EU level. Referring to its previous case law, inter alia,
H. Gautzsch Großhandel, C‑479/12 (IPKat
here),
this condition relates to factual circumstances specific to a given
case and is limited to exceptional situations, for example where the
defendant cannot continue the infringing act. In this case, a national
court is not required to issue an injunction.
The judges found
that an infringement which relates only to some of the pieces of a
modular system, the number of which is small in relation to the total
number of components of that system, does not, as such, constitute such
an exceptional situation allowing the national court not to render an
injunction.
For these reasons, the judges responded to the second question:
"Article
89(1) of Regulation No 6/2002 must be interpreted as meaning that the
concept of ‘special reasons’, within the meaning of that provision,
allowing a Community design court not to make one or more of the orders
referred to in that provision does not cover the fact that an
infringement relates only to some of the pieces of a modular system, the
number of which is small in relation to the total number of components
of that system."
Comment The
CJEU’s judgment offers important clarifications for both rights holders
and alleged infringers in the modular products sector. First, the Court
resisted the temptation to narrow the interpretation of the ‘informed
user’ in the context of Art. 8(3) CDR. By rejecting the idea of an
‘expert-level’ informed user whose perception is primarily driven by
technical considerations, the Court reinforced a fundamental principle
of design law: appearance is decisive, even when technical
interconnection is at stake. This ensures that the LEGO exception
remains true to its purpose: Allowing protection for modular systems
without eroding the broader harmonisation of design law.
Second,
the CJEU’s restrictive interpretation of ‘special reasons’ under Art.
89 CDR limits the flexibility of national courts when infringement is
found. The fact that infringing components represent only a small
proportion of a larger modular set will not, by itself, exempt the
infringer from injunctive relief. However, the CJEU missed the
opportunity to decide whether non-infringing parts in the defendant’s
sets are also subject to enforcement measures, in particular to
destruction.