In a recent reference for a preliminary ruling (MPM-QUALITY, C-693/25),
the Municipal Court in Prague has asked the Court of Justice of the
European Union (CJEU) to clarify when, and under what circumstances, the
five-year period of acquiescence under EU trade mark law may be
interrupted or even restart.
Background
The claimant, MPM-QUALITY, owns Czech trade mark
, registered since 2001, inter alia, for “clocks, watches, timekeeping devices”. It enjoys a priority from 1984.
The
defendant, ELTON, has been using “PRIM” (presumably for watches) since
the 1960s. The parties argue about whether this use can be attributed to
the defendant. The latter obtained registration of EU trade mark (EUTM)

for “watchmaking” and “watches for children” in 2005 after filing for registration in 2003.
The Czech Republic joined the EU on 1 May 2004.
The claimant brought an infringement action against the defendant regarding the use of “PRIM” on 29 April 2009.
In
2014, the Industrial Property Office of the Czech Republic declared the
claimant’s mark, on which its action was based, to be invalid. The
mark was removed from the register.
In 2015, the claimant’s
infringement action was dismissed with final effect due to the
cancellation of the claimant’s trade mark.
The claimant brought
administrative proceedings against the cancellation of its trade mark.
By final judgment of 23 November 2020, the Czech Supreme Administrative
Court annulled the decision of the Industrial Property Office, which led
to the renewal of the mark and its re-entry into the register.
The
claimant brought a new action on 8 February 2021, which is the subject
matter of the reference, before the Municipal Court in Prague (the
referring court).
The questions of the referring court 1. What interrupts the five-year period for acquiescence? First,
the referring court addressed the five-year period for acquiescence,
which might have expired between the date of dismissal of the claimant’s
first action in 2015 and the new action in 2021.
The judges explained the legal starting situation:
According to Art. 209(1)
EUTMR,
as of the date of accession of new states to the EU, an already filed
or registered EU trade mark extends to the territory of the new Member
State in order to have equal effect throughout the EU.
Under
Art. 209(5) EUTMR, the use of a later EU trade mark may be prohibited
pursuant to Art. 137 and 138 EUTMR, if the earlier trade mark or other
earlier right was registered, applied for or acquired in good faith in
the new Member State prior to its date of accession.
In
accordance with Art. 137(1) EUTMR, the EUTMR does not affect
infringement claims based on earlier rights within the meaning of Art. 8
or Art. 60(2) EUTMR in relation to the use of a later EUTM. Claims for
infringement of earlier rights within the meaning of Art. 8(2) and (4)
EUTMR (which include earlier national trade marks) may, however, no
longer be invoked in the case of acquiescence under Art. 61(2) EUTMR.
Art.
61(2) EUTMR states that where the proprietor of an earlier national
trade mark has acquiesced, for a period of five successive years, in the
use of a later EUTM in the Member State in which the earlier trade mark
is protected while being aware of such use, that person is no longer
entitled to apply for a declaration that the later trade mark is invalid
in respect of the goods or services for which the later trade mark has
been used, unless registration of the later EU trade mark was applied
for in bad faith.
On that basis and with a view to the
(wrongful) cancellation of the claimant's trade mark, the referring
court asked the CJEU whether the five-year period “may also be suspended
or interrupted on the basis of a legal circumstance other than the
submission of an actual claim for the prohibition of the use of the EU
trade mark”.
1. a. to c.: Supplementary questions If
the CJEU answers the first question in the affirmative, the referring
court has supplementary questions in order to explore whether the
wrongful cancellation of the claimant’s trade mark might stop or restart
the five-year period for acquiescence:
a. Does the period for
acquiescence cease to run during the period when the national trade mark
has been (erroneously) removed from the register and subsequently been
re-registered (i.e. between 2014 and 2020)?
b. Does the period
for acquiescence, after the national trade mark has been re-registered,
continue to run, or does a new five-year period begin?
c. When
does the five-year period continue to run or restart: From the final
dismissal of the first action or from the date of the re-registration of
the earlier mark?
2. The statute of limitations Under
Czech law, claims for trade mark infringement become time-barred within
three years from the date on which the right could be exercised for the
first time.
Thus, the referring court asked if a claim for
trade mark infringement can become time-barred under national law before
the expiry of the five-year period of acquiescence.
3. Is prior use relevant? Finally,
the judges wondered about the impact of the defendant’s use of “PRIM”
prior to the application and registration of the claimant’s trade mark.
Under Czech law, the defendant obtained a right of a so-called prior
user.
Therefore, the referring court would like to know whether
the claimant can still prohibit the use of “PRIM” by the defendant
despite the defendant having obtained rights of a prior user under
national law.
Comment The first two questions are the most interesting:
1. Acquiescence and interruption The CJEU has provided guidelines on acquiescence in
Heitec (IPKat
here
on the subsequent decision of the German Supreme Court), which seem to
have paved the way for the responses to this preliminary ruling.
Regarding
the question whether acts other than an infringement action can stop
the clock of acquiescence, the CJEU held that there is no acquiescence
where the claimant carries “out an act that clearly expressed its wish
to oppose that use and to remedy the alleged infringement of its rights”
(para. 50). This suggests that circumstances other than an infringement
action can prevent acquiescence.
1. a. Effects of wrongful cancellation The
question whether the period in which the claimant’s trade mark has been
wrongfully cancelled stops the clock on acquiescence requires a
resounding “yes”. The CJEU held in HEITEC that acquiescence
"means
that the proprietor of [the] earlier mark or other earlier right
remains inactive even though it is aware of the use of a later mark
which it would be in a position to oppose."
If your trade mark is cancelled, you cannot invoke it in an infringement action and you are not “in a position to oppose”.
The
defendant can hardly rely on legitimate expectations derived from an
unlawful administrative act later annulled by the courts.
Finally,
applying acquiescence during a period of wrongful cancellation would
undermine the effectiveness of EU trade mark protection.
1.b. Interruption or restart? The
question whether the five-year period is merely interrupted by acts
“that clearly expressed [the claimant’s] wish to oppose” or restarts is
more challenging.
The wording of Art. 61(2) EUTMR appears to be
clear. It requires acquiescence “for a period of five successive years”.
“Successive” suggests that any opposition to the registration or use of
the later mark restarts the clock.
It is also fair to the
defendant, who has been made aware that the claimant does not tolerate
the registration or use of the later mark.
1.c. Relevant starting point It
seems that the period of acquiescence can only restart once the
claimant is in a position to oppose the use again. After the dismissal
of the first action, the claimant could not have filed a second action
because its trade mark was cancelled.
2. National limitation periods The
second question on the applicability of the statute of limitations
under national law provides the CJEU with an opportunity to apply and
develop
Lunapark Scandinavia (IPKat
here).
This
Kat interprets the decision to mean that all time-related defences of
national law, including the statute of limitations, do not apply to
claims based on EU trade mark law (including harmonized national law).
Otherwise, the conditions of acquiescence would be undermined if
national law provided a shorter period for the loss of trade mark
claims.
Stay tuned for the Advocate General's opinion.
The picture is by Alisa Skripina and used under the licensing terms of pexels.com.