UK: Are Their Prior Rights Of More Than Mere Local Significance? COMPASS CTM Case May Direct You To The Answer

Last Updated: 21 April 2004
Article by Sarah Rogers

Wragge & Co LLP recently assisted the Dutch company, Compass Publishing BV, to achieve success in the UK courts in establishing infringement of its Community Trade Mark and in seeing off a challenge to its validity.

Background

Compass Publishing BV ("the claimant") is in the business of management and performance efficiency consultancy based upon comparative analysis. This includes consultancy in the logistics field. Included amongst its trade mark portfolio are two UK trade marks and a Community Trade Mark ("the CTM") for COMPASS. The defendant provides management consultancy services, specialising in the logistics and supply chain field. It has traded under the "Compass Logistics" name since May 1995

The claimant claimed infringement on the basis that defendant’s name was identical to its marks in respect of identical services. Alternatively if the name was only similar then as a result of this similarity and the similarity of the defendant’s services there was a likelihood of confusion. The parties were not yet in direct competition in the marketplace and there was no evidence of actual confusion. However, the claimant argued that confusion would inevitably arise in the minds of the relevant public as the two businesses expanded across the management and logistics consultancy field.

The defendant counterclaimed for invalidity of the CTM on the basis of its prior rights to the name "Compass Logistics". It submitted that its rights would have been sufficient to prevent the registration of the claimant’s CTM. The defendant counterclaimed for invalidity of the first UK mark on the grounds of non-use and partial revocation of the second UK mark on the grounds of prior rights, to the extent that the claimant's specification should be limited to ensure that it excluded the defendant's activities.

Outcome

The court followed LTJ Diffusion SA v Sadas Vertbaudet SA (Case C-291/00) when considering whether the defendant’s name was identical to the COMPASS marks. Only "differences which ordinary members of the public would not notice, save by close side-by-side comparison or the pronunciation of a 1940's BBC newsreader, could be ignored" .The additional word "logistics" was of trade mark significance and therefore "Compass Logistics" was not identical with COMPASS. As the defendant’s witnesses had however admitted in cross-examination to sometimes shortening its name to "Compass" alone and as it had also accepted that its services were identical to those included within the specification, the court found that the CTM had been infringed pursuant to Article 9(1)(a).

Furthermore on a global assessment, a likelihood of confusion did exist between the defendant's sign "Compass Logistics" and the claimant's mark COMPASS when used in relation to business consultancy services including specialist logistics services. A significant section of the public would consider the defendant to be the logistics branch of the COMPASS service. Accordingly, infringement pursuant to Article 9 (1) (b) was established. On the same analysis the first UK mark for COMPASS in Class 42 was similarly found to be infringed pursuant to s 10 (1) and s 10 (2) of the UK Trade Marks Act 1994.

In support of its counterclaim for invalidity of the CTM the defendant submitted that it had generated rights in the UK pursuant to Article 8 (4) of the Community Trade Mark Regulation, being "of more than mere local significance" and therefore sufficient to invalidate the claimant’s later CTM.

When assessing the extent of the defendant’s prior rights, the UK court held that the question whether those rights were "local" should be assessed from a Community-wide perspective, given that Article 8(4) is concerned with the validity of Community rights. Furthermore, an earlier mark but must be of more than "mere" local significance. The court considered that an unregistered mark should be held as having "mere local significance" if its geographical spread was restricted to substantially less than the whole of the European Union, in the context of its Community market for goods or services. On this basis were the defendant’s unregistered rights in the name "Compass Logistics" of mere local significance?

The court held that the defendant had, on balance, built up sufficient goodwill in its mark "Compass Logistics" between the adoption of its company name on 15 May 1995 and the date of the CTM, being 1 April 1996 to support a passing off action which would have prevented the claimant from using this name in the UK. However, these passing off rights were categorised by the court as being of "mere local significance" when applying the Community-wide test. Accordingly, the defendant’s attack on the validity of the CTM failed. The defendant has been given leave to appeal this decision.

The defendant’s attack on the validity of the 1988 UK mark for non-use also failed in view of evidence provided by the claimant that it had properly used its mark in Class 42.

However the defendant’s attack on validity of the later 1996 mark partially succeeded. On the grounds that it had established passing off rights, the claimant’s 1996 UK mark was therefore held to be invalid to the extent that it covered logistics consultancy services. The claimant has been granted leave to cross-appeal on this decision

Comment

Article 8 (4) of the Community Trade Mark Regulation has not yet been considered by the European Court of Justice nor is there any guidance in the travaux preparatoires. As neither party was able to present the court with any authority from any other EU national court it appears that this judgment may well be the first judicial pronouncement on this issue.

This case is also a good illustration that the frequent assumption that an absence of evidence of actual confusion is indicative of a lack of a likelihood of confusion is unsafe where the parties are not yet in direct competition but the specification covers the goods or services which are being marketed under the offending sign.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.