Is a trade mark that contains a year deceptive under Art. 4(1)(g)
Trade Mark Directive (“TMD3”) and its predecessor Art. 3(1)(g)
Second Trade Mark Directive (“TMD2”) if the owner was not established in that year? In
Fauré Le Page
(case C-412/24), the CJEU held that this may be the case where the year
is perceived as indicating a long-established business and thereby
evokes long-standing know-how conferring a perceived guarantee of
quality and prestige on the goods, even though no such know-how actually
exists.
Background The French company Maison
Fauré Le Page had been selling arms, ammunition and leather accessories
in Paris since 1716. It was dissolved and all its assets and liabilities
were transferred to its sole shareholder, the company Saillard, in
1992.
In 1989, Saillard filed an application for the French
trade mark “Fauré Le Page” covering, inter alia, “firearms and their
parts; leather and imitations of leather; trunks and suitcases”. In
2009, Saillard sold this trade mark to Fauré Le Page Paris, a French
company that was established in 2009.
In 2011, Fauré Le Page
Paris filed applications for two French trade marks containing the words
“Fauré Le Page Paris 1717” and covering, inter alia, “leather and
imitations of leather; trunks and suitcases; travelling bags; handbags”
(the “Paris 1717 Trade Marks”).
In 2012, the company Goyard
ST-Honoré sought cancellation of the Paris 1717 Trade Marks on the
ground that they were misleading under the French implementation of Art.
3(1)(g) TMD2.
In the cancellation proceedings, the lower courts
found that the words “Paris 1717” referred to the place and date of
establishment of the business, which led the public to believe in the
continuity of operations since 1717 and in the transfer of know-how from
the former Maison Fauré Le Page to Fauré Le Page Paris, resulting in
the public attributing a particular quality or prestige to the goods.
For the average consumer of luxury leather goods marketed by the Fauré
Le Page companies, the use of very old know-how is considered to be a
decisive factor in their purchase decision.
Fauré Le Page Paris
argued that Art. 3(1)(g) TMD2 (now Art. 4(1)(g) TMD3) requires deceit as
to the characteristics of the goods and services but not as to the
qualities of the trade mark’s proprietor, such as the year of
establishment.
The Cour de Cassation referred three questions to
the CJEU (note that neither the request for a preliminary ruling nor
the CJEU’s decision address the fact that the original company started
selling goods in 1716 but the trade marks in question mention the year
1717):
1. Must Art. 3(1)(g) TMD2 be interpreted as meaning that a
reference to a fanciful date in a trade mark conveying false
information on the age, reliability and know-how of the manufacturer of
the goods and, consequently, on one of the intangible characteristics of
those goods is sufficient to establish the existence of actual deceit
or a sufficiently serious risk that the consumer will be deceived?
2. If the answer to the first question is negative, must that article be interpreted as meaning:
(a)
that a trade mark may be regarded as deceptive where there is a
likelihood that consumers of the goods and services designated by the
trade mark will believe that the proprietor of that trade mark has been
producing those goods for centuries, thereby conferring on them a
prestigious image, whereas that is not the case?
(b) that, in
order to establish the existence of actual deceit or a sufficiently
serious risk that the consumer will be deceived, on which a finding that
a trade mark is deceptive depends, the trade mark must constitute a
sufficiently specific designation of potential characteristics of the
goods and services for which it is registered, so that the targeted
consumer is led to believe that the goods and services possess certain
characteristics which they do not in fact possess?
The CJEU’s decision The Court answered all questions together.
It recalled its finding in
W. F. Gözze Frottierweberei
that, in order to be considered deceptive under Art. 3(1)(g) TMD2, the
trade mark must create per se the risk of deception, “the subsequent
management of that sign being irrelevant in this respect”. The provision
presupposes the existence of actual deceit or a sufficiently serious
risk that the public will be deceived.
Based on the wording of
Art. 3(1)(g) TMD2 and its purpose, which is to target deception inherent
in the sign, the Court found that a mark is “of such a nature as to
deceive the public” only in the case of deception in relation to a
characteristic of the goods or services covered by that mark.
The
judges concluded that deception as to the proprietor of the mark is not
covered by Art. 3(1)(g) TMD2. The date and place of establishment of
the proprietor are not characteristics of the goods.
However,
the year of establishment may evoke particular know-how, which is seen
as a guarantee of the quality of the goods and contributes to bestowing a
prestigious image on them. Since the quality of the product is one of
the characteristics referred to in Art. 3(1)(g) TMD2 and that quality
may, in the field of luxury goods, also result from the allure and
prestigious image of the product, the existence of actual deceit or a
sufficiently serious risk that the public will be deceived, may be found
where such long-standing know-how and, accordingly, the guarantee of
quality and prestigious image associated with or resulting from it do
not actually exist.
For these reasons, the judges held that
“where
a trade mark includes a number which is likely to be perceived by the
relevant public as indicating the year of establishment of a business
and evokes, because that year is in the distant past, long-standing
know-how bestowing a perceived guarantee of quality and a prestigious
image on the goods for which the mark is registered, even though no such
long-standing know-how actually exists, it may be inferred that that
mark is of such a nature as to deceive the public, within the meaning of
that provision.” Comment The CJEU took two facts into account, which are not discernible from the trade mark application, namely:
1.
The owner of the mark has not been active since 1717 in the sale of the
goods for which the mark was filed, meaning that no long-term know-how
in the manufacture of the goods exists.
2. The goods sold under the mark are luxury goods.
The
second point seems less problematic if and when the wording of the
goods is sufficiently broad to cover luxury goods. An absolute ground
for refusal exists if it applies to specific goods that fall under a
broad term such as “goods made of leather” (e.g.
T‑641/21 at para. 35).
However,
taking into account that the proprietor has not been active since 1717
is a questionable endeavour. In this Kat’s view, it conflates the
absolute ground for refusal in Art. 3(1)(g) TMD2/Art. 4(1)(g) TMD3 with
the ground for revocation because of deceptive use in Art. 12(2)(b)
TMD2/Art. 20(b) TMD3. According to the latter provisions, a trade mark
may be revoked if, after the registration date
“as a result
of the use made of it by the proprietor of the trade mark or with the
proprietor's consent in respect of the goods or services for which it is
registered, it is liable to mislead the public, particularly as to the
nature, quality or geographical origin of those goods or services”. This
is precisely the norm that could apply in the present case if the trade
mark owner were to use its trade mark or license it to a third party
which has not been active since 1717 in the sale of the goods concerned.
However, such use should not give rise to an absolute ground for
refusal because the only relevant factors in assessing deceptiveness
under Art. 3(1)(g) TMD2/Art. 4(1)(g) TMD3 are, as the CJEU itself
acknowledged, the sign and the goods and services.
If there is
at least a theoretical possibility of using the trade mark in a lawful
manner – also by way of licensing –, Art. 3(1)(g) TMD2/Art. 4(1)(g) TMD3
should not apply. If it is used in a misleading way, revocation
proceedings under Art. 12(2)(b) TMD2/Art. 20(b) TMD3 would be the
appropriate path to deal with such a situation.
It can only be hoped that the scope of this decision will be limited to its facts and not extended to other situations.