IP Law Watch

Legal issues, law and regulations concerning the world of IP.

 

1
Are Pre-Launch Statements Now Within the Range of the National Advertising Division?
2
Battle of the ballet shoes: UK court finds infringement of registered community design
3
Battle of the Bentleys: Bentley Motors loses trade mark appeal against Bentley Clothing
4
U.S. Spending Bill Includes Sweeping New Copyright and Trademark Measures
5
Neoprene Tote Bags: Watertight Not Copyright
6
Not such a friendly decision for Hugz: A new development in passing off that could help combat fashion copy-cats
7
Australia aligns with the U.S. and EU by adopting ‘exhaustion of rights’ doctrine
8
Brexit and .EU Domain Names – A warning for UK registrants
9
Don’t mess with Ferrari: the Prancing Horse legal drama
10
UK Advertising Regulator makes first ever ruling on disclosures required for commercial marketing via a TikTok video

Are Pre-Launch Statements Now Within the Range of the National Advertising Division?

In a bold departure from its focus on allegedly misleading and deceptive statements in commerce, the National Advertising Division’s (“NAD”) decision in PLx Pharma, Inc. (Vazalore), Report #6912, NAD/CARU Case Reports (December 2020), arguably stretches its jurisdictional scope to include certain pre-national launch investor statements.

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Battle of the ballet shoes: UK court finds infringement of registered community design

The UK IP Enterprise Court has ruled that an Austrian shoe company infringed a registered community design (“RCD”) held by a US based sustainable fashion brand although there was no infringement of the corresponding unregistered community design (“UCD”). The decision is a relatively rare example of a UK, or EU, based Court analyzing fashion items and addressing design novelty issues between 2017 and now. A full copy of the decision can be found here.

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Battle of the Bentleys: Bentley Motors loses trade mark appeal against Bentley Clothing

Luxury car manufacturer Bentley Motors has lost its appeal against a ruling which found it infringed the trade marks of a small, family company called Bentley Clothing. A full copy of the decision can be found here.

Following the ruling, Bentley Motors must stop using the trade mark BENTLEY and their combination sign – the B-in-Wings logo and the word BENTLEY (shown below) – on clothing.

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U.S. Spending Bill Includes Sweeping New Copyright and Trademark Measures

On Monday, 21 December, U.S. Congressional leaders passed a spending bill that included government funding and folded in several controversial intellectual property provisions that will expand the rights of intellectual property owners. These provisions include the Copyright Alternative in Small-Claims Enforce (CASE) Act, the Trademark Modernization Act (TMA), and a law to make certain illegal streaming a felony. The bill was signed into law by President Trump on 27 December 2020.

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Neoprene Tote Bags: Watertight Not Copyright

In the recent judgment State of Escape Accessories Pty Limited v Schwartz [2020] FCA 1606, Justice Davies of the Federal Court of Australia found a fashionable neoprene tote bag was not a “work of artistic craftsmanship” and therefore not an “artistic work” for the purposes of the Copyright Act 1968 (Cth) (the Act). Since the Court found that copyright did not subsist in the State of Escape bag (the Escape Bag), there was no finding of copyright infringement.

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Not such a friendly decision for Hugz: A new development in passing off that could help combat fashion copy-cats

On 19 November 2020, the Intellectual Property Enterprise Court (IPEC) in the UK handed down its judgment in the case of Freddy SPA v Hugz Clothing Ltd & Ors [2020] EWHC 3032, which ran for an unusually long time for the IPEC (three days).

The decision was a rare occurrence of a passing off claim, together with other IP causes of action, succeeding in the get-up of a functional item, being “bum enhancing jeans”. Ordinarily, such cases, particularly with respect to fashion items, fail as the get-up is seen as merely design elements or ornamental, or the circumstances of the use lead to a conclusion that other trade marks (e.g. brand names and logos) dominate consumer perception.

This case could embolden brand owners in relation to enforcement of the look and feel of their clothing as it creates the possibility of confusion ‘post-sale’ in addition to the point of sale.

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Australia aligns with the U.S. and EU by adopting ‘exhaustion of rights’ doctrine

The High Court of Australia’s recent decision Calidad Pty Ltd v Seiko Epson Corporation [2020] HCA 41 (Calidad) has more closely aligned Australian patent law with its U.S. and European counterparts. Key takeaways from this decision are:

  • the ‘doctrine of exhaustion of rights’ has replaced the ‘implied licence doctrine’;
  • a patent owner’s exclusive rights are extinguished by the first sale of the patented goods;
  • innovators have greater scope to reuse products without risking patent infringement; and
  • patentees seeking greater control over post-sale use should do so through contract law.
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Brexit and .EU Domain Names – A warning for UK registrants

Despite the UK having officially left the European Union on 31 January 2020, the Brexit transition period has been in place maintaining the status quo until 31 December 2020. However, with the end of transition period just around the corner, there are a number of important factors for businesses to be considering including the potential impact on .EU domain names.

Importantly, from 1 January 2021, UK Registrants will no longer be eligible to hold a .EU domain name. Each of the following would be classed as UK Registrants:

  • UK undertakings or organisations established in the UK but not otherwise in the EU;
  • UK citizens who are not resident of an EU member state; and
  • UK residents who are not EU citizens.
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Don’t mess with Ferrari: the Prancing Horse legal drama

Use of Ferrari’s trade mark in a fashion show or on social media requires consent. This is the lesson we assume Philipp Plein has recently learnt following a couple of legal defeats before the Italian Courts that ruled in favour of Ferrari.

In a ruling issued by the Court of Genova last June, the Court ruled in favour of Ferrari for the illegitimate use of Ferrari’s trade marks on Plein’s Instagram account. The designer on that occasion posted several pictures as well as Instagram stories showing some of his clothing line with Ferrari’s trade marks in the background. Ferrari successfully argued that in those shots Philipp Plein was unlawfully appropriating the positive image and reputation of the well-known car company by using its trade marks for promotional purposes.

In another recent case, the Court of Milan ordered Plein to remove from its website, social media, and other online platforms all the videos and images showing Ferrari cars and trade marks. The Court also ordered the payment, in favour of Ferrari, of €300,000 in damages plus legal fees as well as the publication of the decision in two national newspapers. Furthermore, in the event in which that Philipp Plein would not promptly remove the contested images and videos representing Ferrari cars and trade marks, it will have to pay a penalty of €10,000 for each day of delay in the removal of the infringing images and videos. To view the decision, click here.

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UK Advertising Regulator makes first ever ruling on disclosures required for commercial marketing via a TikTok video

A TikTok post on an Emily Canham’s account, a beauty blogger and YouTube star, is the first TikTok video found to be in breach of the Advertising Standards Authority’s (ASA) requirement for disclosure in the UK (see here).

The post, which featured a video of Emily Canham using a branded hairdryer and straighteners, included a caption alongside the video stated:

hiii just a lil psa there’s 20% off the [Brand] website TODAY ONLY with the code EMILY … #fyp #foryourpage“.

The brand in question had entered into an agreement with Ms Canham, which required Ms Canham to post a number of social media posts while at a music festival. The music festival was cancelled as a result of COVID-19. However, the contract was varied and still required several social media posts featuring a certain promotional code.

It was submitted to the ASA that the TikTok was created without the oversight or approval of the brand, and did not form part of Ms Canham’s contract. Additionally, both Ms Canham and the brand pointed to the fact that she had not been compensated for the promotional code featured in the TikTok video.

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