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ISSUE090 26.04.2016 w w w. i p p r o t h e i n t e r n e t . c o m The primary source of global intellectual property internet news and analysis Value gap despite major growth in digital music There is a major value gap between digital sales and revenue growth, according to the International Federation of the Phonographic Industry (IFPI). Music is being consumed at record levels, the IFPI Global Music Report 2016 has found, but not enough revenue is returning to artists and labels. Digital sales became the primary revenue stream for recorded music in 2015, overtaking physical sale formats for the first time. Digital revenues now account for 45 percent of total revenues compared to 39 percent for physical sales. Google Books can proceed after Supreme Court rejection The US Supreme Court has declined to hear the Google Books case, dealing a major blow to authors looking to be compensated for the mass digitisation project. Justices handed down the decision to refuse certiorari on 18 April, following the Authors Guild’s appeal against the Court of Appeals for the Second Circuit’s ruling that Google’s mass digitisation of millions of books is a fair use under copyright law. The case has been raging since 2004 when a group of university libraries allowed Google to scan their collections to create a database containing the full text of millions of works. It was called the Mass Digitisation Project, but was later rebranded as Google Books. The Authors Guild, among others, claimed that Google sought to profit from using its authors’ books without obtaining their permission, prompting legal battles that have bounced between the Second Circuit and the US District Court for the Southern District of New York since 2005. A resolution was almost found in 2011 when the Authors Guild and Google came to a settlement, but the deal was quashed for being anti-competitive. Then, in October 2015, the Second Circuit confirmed that “Google’s unauthorised digitising of copyright-protected works, creation of a search functionality, and display of snippets from those works are non-infringing fair uses”. Continued on p2 Total industry revenues increased 3.2 percent to $15 billion, leading to the industry’s first significant yearly growth in more than two decades. Digital revenues now account for more than half of the recorded music market in 19 countries. Continued on p2 Counterfeit trade worth half a trillion dollars Global trade in fake goods was worth almost half a trillion dollars in 2013, a new report has claimed. The report from the Organisation for Economic Co-operation and Development (OECD) and the EU Intellectual Property Office (EUIPO) put the value of total global imports at $17.9 trillion in 2013, meaning counterfeits accounted for around 2.5 percent of the world’s trade, with a value of $461 billion. The report analysed nearly half a million customs seizures around the world between 2011 and 2013. Continued on p2 Latest News Google Books can proceed after Supreme Court rejection Continued from p1 “The purpose of the copying is highly transformative, the public display of text is limited, and the revelations do not provide a significant market substitute for the protected aspects of the originals. Google’s commercial nature and profit motivation do not justify denial of fair use,” the Second Circuit explained in its decision. online from playing by the same rules as other online music services. The European Commission acknowledged the value gap issue in December 2015. According to IFPI, the European Commission plans to make its proposals on how to address the value gap public this year. The US Copyright Office is currently reviewing the safe harbour provisions in the Digital Millennium Copyright Act, although experts The Authors Guild argued in its 31 December say that the process is not expected to result 2015 petition to the Supreme Court that in any significant changes to how online service by “divorcing the fair-use enquiry from the providers are protected from liability. Oracle and Google fail to reach a settlement traditional goal of promoting creativity, the ahead of the $9 billion copyright trial over approach empowers judges to approve any Counterfeit trade worth half a trillion dollars the unauthorised use of Java in the Android reuse of copyrighted works that those judges Continued from p1 operating system deem socially beneficial”. p4 It points to a larger volume than a 2008 Authors Guild president Roxana Robinson OECD study that estimated fake goods called the Supreme Court’s decision “a accounted for up to 1.9 percent of global The Federation Against Software Theft and imports, although the 2008 study used more V.i. Labs team up to launch an educational colossal loss” for authors. limited data and methodology. campaign aimed at businesses that unintentionally use unlicensed software She said: “We filed the class action lawsuit p6 against Google in September 2005 because, Up to 5 percent of goods imported into the EU as we stated then, ‘Google’s taking was a in 2013 were fakes, according to the report, plain and brazen violation of copyright law.’ with French, Italian and US brands being hit the We believed then and we believe now that hardest by counterfeiters. authors should be compensated when their “This percentage is likely to have increased work is copied for commercial purposes.” further since then, with the growing importance A Google spokesperson commented: “We are of ecommerce and the delivery of counterfeits grateful that the court has agreed to uphold to consumers by parcel post,” commented the decision of the Second Circuit which Jeremy Newman, managing partner at Rouse. concluded that Google Books is transformative “This is a shockingly high percentage for such and consistent with copyright law.” an economically and legally advanced region— Value gap despite major growth in suggesting that the solution is not to be found digital music market in one country or region alone, but in a joined Continued from p1 up global approach.” Attendees of the IACC Spring Conference in Florida can look forward to a keynote In spite of the growth of the digital music In the period between 2011 and 2013, the US speech from Alibaba’s Jack Ma market, consumption is not returning a fair topped the list of brands that were most affected p7 remuneration to artists and record labels, by counterfeiting, at 20 percent. Fifteen percent according to IFPI. of Italian brands were affected, followed by France and Switzerland, at 12 percent each. “The value gap is the biggest constraint to revenue growth for artists, record labels and Most fake goods originate from China as well all music rights holders. Change is needed as middle income and emerging countries, said and it is to policymakers that the music sector the report. looks to effect change,” commented IFPI chief executive Frances Moore. “The findings of this new report contradict the image that counterfeiters only hurt big Some major digital services are able to companies and luxury goods manufacturers. circumvent the normal rules that apply to music They take advantage of our trust in trademarks licensing, according to the report. User upload and brand names to undermine economies and services, for example, claim they do not need endanger lives,” said OECD deputy secretary Dr Judit Lantos and Dr Ildiko Komor Hennel to negotiate licences for the music on their general Doug Frantz. of Sár and Partners – Danubia Patent & Law platforms, IFPI has found. Office report on a controversial trademark case Yahoo patents worth less than p9 Such services claim protection from copyright $1 billion, argues law firm safe habour provisions, but they are being misapplied, IFPI said in its report. The rules Yahoo’s reported $3 billion patent portfolio Comings and goings at Procopio, Mayer were not designed to exempt companies that is actually worth $772 million, according to Brown, Corrs Chambers and more actively engage in the distribution of music Richardson Oliver. p13 Contents Latest News Latest News Conference Preview Hungary Insight People Moves 2 Intellectual Property in an Innovative World Latest News The law firm delved into claims, “stated over online use of copyright and trademarks, without any data to back up the analysis”, that according to Yang Borong, chief judge of the have put the value of Yahoo’s patent portfolio Beijing court’s intellectual property tribunal. in the billions. Beijing courts heard 13,939 IP cases last Yahoo is currently the subject of intense year, an increase of 24 percent from 2014. takeover speculation after years of revenue More than 10,000 of those disputes had an declines. The internet company reportedly online component. owns 6,000 patents estimated to be worth up to $3 billion and has sold or licensed more than Borong said: “We summarise difficulties in $600 million in rights over the last three years. hearing IP cases on the internet and clarifying web operators’ responsibilities in the guidelines, The internet company’s portfolio is “sizeable”, helping city grassroots courts to effectively deal according to Richardson Oliver, and it has with related disputes.” acquired a number of assets from other companies. But the price of its portfolio would The Beijing High People’s Court also not be worth the $3 billion estimate on the announced that high profile IP cases, hearing and documents will soon be made available current market, the law firm said. in English. “The market is changing quickly and is down by more than 60 percent compared to four years “We have had the idea to supply English ago and continues to decline,” found the report. versions for some time, but due to the limited number of English speakers in the court, the Based on its analysis of the market, the firm first batch of cases could not been issued until proposed that Yahoo’s total patent assets could now,” said Pan Wei, assistant to the court’s IP expect an asking price of around $1.8 billion, tribunal chief judge. An initial batch of 10 IP but for just the US patents, the price would be cases have been released in English. $605 million. “We also want both Chinese and foreigners to Assuming that every patent sells, the firm understand our IP case hearings and keep our placed the market price of the patents between work transparent.” $393 million and $1.15 billion, and estimated Yahoo’s portfolio value to be in the region of Oracle and Google fail to negotiate $772 million. Oracle and Google have failed to reach a The US Supreme Court’s 2015 Alice decision, settlement ahead of the $9 billion copyright “gutted business method patents and damaged trial over the unauthorised use of Java in the many software patents,” stated the firm. “Yahoo Android operating system. is not immune to the negative impact.” Company representatives discussed the case Guidance planned for cyber disputes at the US District Court for Northern District in China of California on 15 April before Judge William Alsup, but failed to agree on a settlement ahead The Beijing High People’s Court has issued of the retrial over whether Google had a fair guidance for city courts handling intellectual use defence to infringing Oracle’s copyright, property disputes in the digital space, following according to court documents. an increase of disputes in China’s capital. The case is moving to retrial following the The guidance will be based on two years Supreme Court’s June 2015 dismissal of of research and study concerning disputes an appeal against a Court of Appeals for the IPzen 4 Federal Circuit ruling that upheld the copyright in, and reinstated Google’s infringement of, 37 Java application programming interfaces (APIs). The Federal Circuit returned the case to district court for a retrial on whether Google has a fair use defence to its use of the APIs in Android, as the original jury failed to return a verdict. Recently unsealed court documents revealed that Oracle is seeking $9.3 billion in damages from Google. Oracle filed a damages report along with expert witness testimony in February, arguing that it is entitled to $8.83 billion in apportioned profits, plus $475 million in damages. UDRP returns eBay and PayPal domain names PayPal and eBay have secured the return of 13 infringing domain names from two cybersquatters in South Korea. A panellist at the World Intellectual Property Organization’s Arbitration and Mediation Center returned the domains to the ecommerce site and digital payment service on 11 April. Korean companies Noorinet and Linecom registered the 13 domain names, which included thaiebay.com and paypal-card. com, containing eBay and Paypal trademarks between May 2007 and July 2014. eBay and PayPal, which was spun-off as a separate company last year, filed a Uniform Dispute Resolution Policy (UDRP) on 11 January. They argued that the disputed domain names are confusingly similar to their trademarks, with the addition of generic terms such as ‘card’ and ‘thai’ failing to distinguish the domains from their registered rights, and were registered in bad faith for “commercial gain”. “The domain names are being used to attract, for commercial gain, internet users to their Stillwaters Law Firm ADDRESS & CONTACT DETAILS 2nd Floor 11, Awolowo Road, Ikoyi P. O. Box 56161, Ikoyi 101008, Lagos, Nigeria Tel: +234 (0) 1 454 7179, +234 (0) 1 460 5471 Mobile: +234 (0) 803 324 8860 Fax: +234 (0) 1 460 5470 Email: [email protected] www.stillwaterslaw.com STILLWATERS is an award winning law firm in Nigeria that specializes in intellectual property law, corporate and commercial, taxation and litigation. The firm operates from the commercial cities of Lagos and Abuja in Nigeria, with associate offices in Accra in Ghana and Douala in Cameroon. Professionalism, flexibility and innovation are the hallmark of our practice. We value professional excellence, outstanding result and realize they both require creativity and hard work. We strive to gain every legal advantage for our clients while upholding the principles behind the practice of law. Over the years, we have acquired considerable experience and an enviable reputation for rendering quality legal services in our areas of specialization. Practice representative clients include over 660 foreign multinationals, publicly-quoted companies, private companies, financial institutions, government institutions, industrial medium size businesses and individuals. Our practice is adequately equipped and well positioned to meet the challenges of legal practice in an ever-changing technological age. People . Integrity . Service • • • • Trademarks Patents Designs Copyright Anti-counterfeiting Border Enforcement Measures Domains Data Protection IP Litigation • • • • • IP Due Diligence Annuities Transfer of Technology Piracy Licensing Distributorship Franchising Customs Related Assistance Registrations Renewals Assignments Latest News websites by creating a likelihood of confusion,” Alex Hilton, CEO of FAST, said: “Often, the purposes, without resulting in the permanent they argued. Noorinet nor Linecom responded legally inclined user has no idea that they are availability of content protected at EU level,” using unlicensed software.” said Abramavičius. to the complaint. Sole panellist Moonchul Chang agreed with eBay and Paypal, finding that the domains names substantially incorporated their marks, without permission, for the sole purpose of attracting internet users to “parking websites with sponsored links”. “Unsuspecting buyers can also be duped when purchasing from online sites which target buyers looking out for a bargain. It is not uncommon that prices of counterfeit software just below the usual price, giving the application an air of legitimacy.” “Having considered Noorinet and Linecom’s registrations of multiple confusingly similar disputed domain names incorporating eBay and Paypal’s widely known trademarks, together with the fact that Noorinet and Linecom have also been the respondents in over 60 domain name disputes, the panel finds that these registrations constitute a typical pattern of cybersquatting in bad faith.” V.i. Labs recovers software use. revenue for One way to ensure this would be for service providers to verify the member state of residence of their subscribers, the committee suggested. The committee said it is “receptive” to the proposal for a licensing agreement that allows unpaid cross-border access to content. It also supports EU action to ensure efficient It has uncovered more than $16 billion in licence and transparent distribution of levies among revenue opportunities since 2006, according to right holders. its statement, and has recovered for than $1 billion for clients. Abramavičius added: “In the long term, we should proceed towards greater Michael Goff, marketing director at V.i. Labs, convergence between national copyright added: “We are working with hundreds of systems and aim to harmonise the legal GCHQ ‘rumbled’ Harry Potter leak software companies to help them identify those framework for the remuneration of authors, users who may not even know that the product creators and artists.” UK surveillance agency GCHQ stepped in to they are using is pirated.” prevent the sixth Harry Potter leaking online, Oracle recovers orracle.com the publisher has claimed. “There is an army of users who would be horrified to know that the applications they Oracle has secured the return of an infringing Bloomsbury Publishing Nigel Newton said were using day-to-day are pirated.” domain name from a typosquatter. GCHQ agents contacted him ahead of publication of The Half Blood-Prince to warn Cross-border accessibility must not The World Intellectual Property Organization’s him that they’d found a copy online, but it was corrode copyright Arbitration and Mediation Center ruled in favour a fake. of Oracle on 4 April. Removing unjustified geo-blocking must Newton revealed that GCHQ agents read a page not lead to the abolition of the territoriality Panellist George Souter ruled that the domain of the copy over the phone to a Bloomsbury of copyright, according to local and regional name orracle.com was registered in bad faith. editor to confirm its authenticity. EU representatives. Oracle accused the registrant on 17 February GCHQ, or the Government Communications The EU’s Committee of the Regions held a of registering orracle.com in bad faith. Headquarters, is in charge of the UK’s cyber plenary discussion in Brussels on 8 April, intelligence efforts. concluding that the European Commission’s The domain name is confusingly similar plans for a portability right must be narrow to the Oracle trademark, according to the The agency would only say in a statement: in nature. complaint, with the “mere addition” of a “We don’t comment on our defence against second ‘r’ to ‘Oracle’. the dark arts.” As part of its Digital Single Market strategy, which aims to modernise EU copyright for Oracle claimed that the registrant has no Newton went on to describe the lengths the digital age, the European Commission is rights or legitimate interests in the domain that Bloomsbury had to go to stop The Half consulting on the introduction of a cross-border name, which directed users to a pay-perBlood-Prince from leaking, including going on portability right that would break down member click website and others not associated with complete security lockdown and fending off state borders, allowing the use of content the software company. covert attempts to bribe staff to steal copies. licensed in one jurisdiction in another. The registrant, who registered orracle.com FAST and V.i. Labs tackle unintentional Arnoldas Abramavičius, head of the in November 2004, did not reply to Oracle’s copyright infringement Lithuanian delegation at the Committee of UDRP complaint. the Regions, drafted the committee’s opinion The Federation Against Software Theft on a portability right, which largely supports Souter found that because Oracle’s well-known and V.i. Labs have teamed up to launch an the portability of online content services trademark was incorporated in its entirety, with educational campaign aimed at businesses that between EU member states. no additions beyond a “non-distinctive element unintentionally use unlicensed software. and the legally irrelevant .com”, orracle.com The abolition of geo-blocking should secure was registered in bad faith. Working with FAST, V.i. Labs aims to raise both flexibility for consumers and the same the issue of unpaid licences and accidental degree of respect for the creative and “The use of a domain name in connection copyright infringement. commercial value of the content, according to with the use of a website with a pay per click the committee. facility directing users to third-party websites is Based on research from Adobe, Disney and potentially damaging to the trademark owner.” Microsoft, 83 percent of software ‘pirates’ in “Rights holders need to be sure that portability markets like the UK are in fact legally inclined covers only the most common examples The domain name was returned to Oracle on victims of software piracy, according to FAST. of travel for business, tourism or study 4 April. 6 Conference Preview Mark Dugdale reports Bringing intermediaries to the forefront Attendees of the IACC Spring Conference in Florida can look forward to a keynote speech from Alibaba’s Jack Ma, as well as protection and enforcement discussions The International AntiCounterfeiting Coalition (IACC) is organising its Spring Conference in Orlando, Florida, in partnership with the International Chamber of Commerce’s Business Action to Stop Counterfeiting and Piracy (BASCAP). The theme of this year’s conference will be rights holders and intermediaries working together to stop fakes. “The problem of counterfeiting is too pervasive and complex for any single company or industry to combat on its own,” explained Barchiesi. “By bringing intermediaries to the fold, we are offering our current membership a new way to work with them directly on this issue while coordinating a collective effort to developing solutions to global counterfeiting and piracy.” In that context, Alibaba Group executive chairman Jack Ma has been confirmed as the conference’s keynote speaker. The Spring Conference will take place between 18 and 20 May. He added: “We’re excited that Alibaba, one of our strongest partners, has joined the IACC and we look forward to their membership as a further step in enriching our existing dialogue and partnership.” Ma founded Alibaba in 1999 and the company has gone on to own the leading ecommerce websites in China. During his keynote speech at the Spring Conference, Ma will address the importance of ecommerce and the industry coming together to collectively fight brand counterfeiting. Matthew Bassiur, head of global IP enforcement at Alibaba, commented: “Alibaba is committed to protecting IP rights. In joining the IACC, a recognised global leader in anti-counterfeiting, we strengthen our continued efforts in tackling this problem head-on.” Six sessions over the course of 18 to 20 May at the Spring Conference will thrust intermediaries into the limelight. Bob Barchesi, president of the IACC, said: “The Spring Conference provides a communication channel between different parties to engage with one another and discuss practical and innovative solutions to counterfeiting and piracy.” The last session on 19 May will focus on ecommerce, which the IACC described in its conference agenda as a “complex, interconnected network of intermediaries” that delivers “a seamless range of online services to consumers and businesses”. But this has presented criminal networks with an enormous opportunity to market, sell and distribute counterfeit and pirated goods. Jeff Hardy, director of BASCAP, added: “We are delighted to be partnering with the IACC on this important event focusing on how intermediaries and rights holders can work together to stop counterfeiting and piracy.” The IACC’s panel will explore some of the intermediaries involved in the online supply chain, including ecommerce marketplaces, search engines and other players, and discuss some of the voluntary programmes being implemented to limit access of illicit traders. Alibaba was recently confirmed as the first intermediary member of the IACC. The IACC, whose membership was previously restricted to brands, law firms, associations, investigators, product security specialists, government agencies and universities, will accept intermediaries as ‘general members’. Attendees of the conference on 20 May will be treated to three sessions touching on online counterfeiting and piracy, with panellists on the first considering how the policies and procedures of search engines and social media are enforced to mitigate illegal content and products. “[This] status is reserved for companies that are not directly or substantially impacted by counterfeiting, but whose industry position or policies make them a potential partner with the IACC in its mission to combat counterfeiting and piracy,” the IACC explained. The session before lunch will focus on hitting counterfeiters and pirates in the pocket. Panellists from credit card companies, brands and law enforcement will discuss innovative ways they have been able to strike counterfeiters and pirates, as well as how bad actors have been able to evade detection, in a bid to underscore the need for brands, intermediaries and governments alike to keep pace. The coalition has a strong relationship with China’s Alibaba, so it’s unsurprising that the ecommerce giant is the first intermediary to join its ranks as a general member. They signed a memorandum of understanding in 2013 and jointly launched the MarketSafe programme in 2014. Finally, panellists will consider the role internet hosting services, domain registrars and registries and how they can be employed to strike those who sell counterfeits and unlicensed content. The panel will look at the current system and the approaches and best practices for blocking domain name abuses and seizing existing illegal and illegitimate sites. IPPro MarketSafe sees the the IACC and its participating members work to identify and take down infringing listings on Alibaba ecommerce platforms Taobao and Tmall via an expedited removal procedure “that has resulted in a 100 percent take-down rate when companies stand behind their claims”. 7 LEARN.STRATEGIZE.NETWORK. We expect more than 9,500 brand management, trademark and other IP professionals from all over the world to register for the 2016 INTA Annual Meeting! Don’t miss this opportunity to be part of the world’s biggest brand owners meeting and take advantage of hundreds of educational sessions, business strategy meetings and networking opportunities. Meeting highlights include: • More than 300 educational offerings including 55 general educational sessions, more than 225 table topics, users’ group meetings with leaders from several national and regional trademark offices, a 2-day Course on International Trademark Law and Practice, Mediation Training, a new Academic Series, Career Development Day, the Trademark Administrators Brunch and more. • Opportunities to collect CLE credits from 50 U.S. states and CPD points from several international law societies. • Special offerings for IP professionals at corporations of all sizes, including the In-House Practitioners Workshop and Luncheon, the In-House Practitioners reception and 10 Industry Exchanges. • Hassle-free ways to conduct business in the Orange County Convention Center by booking one of 3 different types of meeting spaces. • More than 30 official networking events, including a new exclusive INTA Concert at the House of Blues, the Sunday evening Opening Ceremony and Welcome Reception, 17 paid networking excursions, Speed Networking, Annual Meeting Registrant First Time Orientation and Reception, and the Grand Finale. • Exhibition hall with more than 100 exhibitors and numerous sponsorship opportunities. • Over 100 committee, project team and Global Advisory Council meetings for the new committee term (2016–2017). • Numerous meeting conveniences just for you including complimentary shuttle services at INTA hotels and the Orange County Convention Center! Register today at www.inta.org /2016AM! #INTA16 Hungary Insight A recent trademark decision in Hungary clarified ‘against the public order’ as an absolute ground for refusal. Dr Judit Lantos and Dr Ildiko Komor Hennel of Sár and Partners – Danubia Patent & Law Office report on how the case proceeded The Budapest-Capital Regional Court has recently issued an interesting decision about a rarely used prohibitive stipulation of the Trademark Act. Essentially, the court ruled that a trademark application for the word mark ‘Police’ for certain commercial services is not against the public order. This decision clearly interprets the notion of “being against public policy or order” and draws attention to the importance of procedural questions and details emerging in a case. trademark law, in which it is stipulated that trademarks that are contrary to public policy or accepted principles of morality will not be registered, as they form an absolute ground for refusal. The trademark applicant only learned about this unfavourable development when it received the final refusal from the World IP Organization (WIPO). In response, the applicant filed a very detailed appeal against the refusal but in spite of all reasoning and evidence, HIPO rejected the trademark application. Police is a prominent luxury brand whose trademark is widely known and used, primarily for eyewear. An international trademark application for the word mark ‘Police’ was filed in Hungary in class 35, which covers goods and services such as eyewear and optical products, perfumery and beauty articles, leather goods, and clothing and footwear. The international trademark designated several countries, including Hungary. The applicant filed an appeal against the unfavorable decision at the Budapest-Capital Regional Court. In its petition, the applicant referred to the fact that it did not receive the provisional refusal from HIPO, as well as it submitted a defence on the merits. The Budapest-Capital Regional Court did not accept the fact that the provisional refusal was not received by the applicant and upheld the decision rejecting the trademark application. The Hungarian Intellectual Property Office (HIPO) issued a provisional refusal based on Article 3(1)(a) of the Hungarian Trademark Act, which states that a mark may not enjoy trademark protection if it is against the public order. This section fully corresponds to EU At this stage of the proceeding, the case was transferred to our offices, Sár and Partners and Danubia Patent & Law Office, from a competing law firm. The applicant only learned about this unfavourable development when it received the final refusal from WIPO. In response, the applicant filed a very detailed appeal against the refusal, but HIPO rejectedthe trademark application Dr Judit Lantos, Partner, Sár and Partners – Danubia Patent & Law Office 9 Hungary Insight The applicant also pointed out that ‘police’ is an English word and not used to describe Hungarian security organisations. The applicant also referred to the fact that it has received trademark protection in several countries, including where English is the official language, and that ‘police’ has also been used in different contexts, such as in the case of the famous band, Police. Also, the applicant stated that it has been using the ‘Police’ for a long time, uncontested, while consumers have become familiar with its products and brand. The fact that both the domain name owned by the applicant, policelifestyle.com, and the domain of the Hungarian state defence organisation, police.hu, contain ‘Police’ made it very challenging for the applicant to form a defence strategy against the public order argument of HIPO. But the Budapest-Capital Regional Court accepted the arguments of the applicant and obliged HIPO to register the trademark. Even though HIPO examined the use of the designation with regard to being against the public order, the Budapest-Capital Regional Court made a clear standpoint that it is the designation itself that should be capable of, per se or implicitly, being against the public order by its direct meaning or by way of association. The case was brought to the Court of Appeal, which accepted the applicant’s arguments and ordered HIPO to carry out the examination procedure once again, now in possession of the reply of the applicant. Key evidence was a declaration from WIPO that stated that the agency had sent the provisional refusal to the applicant, but no record existed of the applicant receiving it, because delivery records were only kept for six months, which had since elapsed. This was important because the rules stipulate that the burden of proof lies with the sender in confirming delivery, rather than the applicant in confirming receipt. Since the Trademark Act does not provide a definition for the notion of “public order”, this excluding ground for registration should be applied in the narrowest possible terms and only if the mark’s meaning hinders the applicant in a specially reasoned case to have an exclusive right to have trademark protection for the designation. It also has to be taken into account that the designation has been widely used and has a good reputation. According to the court, the use of ‘Rendőrség’, the name of Hungary’s civil law enforcement agency, could be against the public order since it is generally accepted that one may not use the name of state bodies for commercial purposes. The Court of Appeal accepted these arguments and annulled the decision of HIPO and the first instance Budapest-Capital Regional Court. The case was sent back to HIPO for re-examination. But in its new decision, HIPO again established the existence of being against the public order and rejected the trademark application. But in this case, ‘Police’ is not the same as ‘Rendőrség’. The court also took the fact into consideration that if in other countries, especially where the name of the state defence body is the same as the designation, the designation is not considered against the public order, this cannot be otherwise in Hungary. HIPO did not accept several arguments to the contrary, including that the same trademark was registered in several countries, it enjoys a good reputation and has been intensively used for decades. According to HIPO, the question of good reputation has no relevance when deciding the question of public order. As this absolute ground of refusal was dismissed, HIPO continued the registration procedure of the trademark and issued its final statement granting protection. IPPro On appeal, the applicant drew the attention of the court to the difference between its activities and those of the Hungarian police. Since the Trademark Act does not provide a definition for the notion of “public order”, this excluding ground for registration should be applied in the narrowest possible terms, according to the court Dr Ildiko Komor Hennel, Partner, Sár and Partners – Danubia Patent & Law Office 10 IACC 2016 Annual Spring Conference INTA 2016 Annual Meeting Location: Florida Date: 18-20 May 2016 www.iacc.org Location: Florida Date: 21-25 May 2016 www.inta.org Join 550+ of the world’s top brands, government and enforcement officials, intermediaries and service firms who will be in attendance at this year’s IACC 2016 Annual Spring Conference. The focus will be on intermediaries and the actions that they and rights holders can collectively take to address counterfeiting and piracy More than 9,500 brand management, trademark and other IP professionals from all over the world attend INTA’s 2016 Annual Meeting, which will host 300 customised educational offerings and 30 official networking events. For more events visit www.ipprotheinternet.com/events/events.php People Moves Comings and goings at Procopio, Mayer Brown, Corrs Chambers and more Procopio has added internet and domain name lawyer Marina Lewis as senior counsel to its office in San Diego. She has patent, trademark, copyright and trade secret experience across a range of technologies, including communications, software and electronics and devices. Editor: Mark Dugdale [email protected] +44 (0)203 750 6022 Lewis is serving a three-year term as the American Bar Association representative on the IP constituency to the Internet Corporation for Assigned Names and Numbers. Deputy Editor: Stephanie Palmer [email protected] +44 (0)203 750 6019 Tom Turner, managing partner at Procopio, said: “We are thrilled to have Lewis join our growing IP practice.” “Lewis’s deep knowledge of domain and internet law is a perfect complement to our IP counseling and IP litigation teams.” Reporter: Tammy Facey [email protected] +44 (0)203 750 6017 Mayer Brown has recruited Sarah Deutsch as counsel in Washington DC. Contributors: Becky Butcher and Drew Nicol [email protected] She previously spent 23 years at Verizon where she managed the company’s global intellectual property practice and team responsible for copyright, trademarks, domain name enforcement and portfolio management. Marketing Director: Steven Lafferty [email protected] Designer: John Savage [email protected] +44 (0)203 750 6021 Deutsch also has experience in counselling, IP prosecution and enforcement, online liability and cyber security and related advocacy. Associate Publisher: Carlos Northon [email protected] +44 (0)203 750 6023 Prior to working at Verizon, Deutsch was chief property counsel for Bell Atlantic. Publisher: Justin Lawson [email protected] +44 (0)203 750 6019 Corrs Chambers Westgarth has hired Jonathan Lawe Davies as special counsel. Account Manager: Clinton Hanson [email protected] +44 (0)203 750 6025 Davies previously ran his own IP boutique, Iperative. He has also worked as corporate counsel at Amazon and general counsel for technology company Ipernica. Recruitment Manager: Chris Lafferty [email protected] +44 (0)208 663 9624 John Denton, CEO of Corrs Chambers Westgarth, said: “Davies’s extensive IP experience will allow us to support our growing base of start-up and well-established technology commercialisation clients in western Australia.” Office Manager: Chelsea Bowles [email protected] +44 (0)203 750 6020 McGlinchey Stafford has added Brian Koide as partner in its IP team in Washington DC. Office fax: +44 (0)20 8711 5985 Koide has served as lead and co-lead counsel for numerous patent infringement disputes throughout his 20-year career. Published by Black Knight Media Ltd Stay connected with IPPro The Internet on Twitter, Facebook and LinkedIn He has litigated a wide range of technologies, including smartphones, mobile apps and graphic user interfaces, representing patent holders and accused infringers in patent infringement cases. Published by Black Knight Media Ltd Andrew Patty, co-chair of McGlinchey Stafford’s IP group, said: “Koide is an outstanding IP attorney and litigator. He is a great asset for our thriving Washington DC business and a top-level resource for our clients.” IPPro Provident House, 6-20 Burrell Row, Beckenham BR3 1AT, UK Company reg: 0719464 Copyright © 2016 Black Knight Media Ltd All rights reserved Have a hire or promotion we should cover? Let us know via: [email protected] 13