In a recent ruling, a Regional Court in Poland reaffirmed that importing branded goods from the UK into the European Union (EU) without the right holder's consent constitutes a criminal offence under Polish and EU intellectual property (IP) law. This case, handled by our team, underscores the importance of respecting trademark rights and compliance with the principle of exhaustion of rights in the EU market. The exceptional outcome reflects the extensive effort and commitment invested in this matter.
Case Overview
The case involved an individual accused of committing multiple offences related to the unauthorized use of a registered trademark under Polish law. The goods in question were genuine, branded products, not counterfeits, originating from the UK, a non-European Economic Area (EEA) country. The crux of the case revolved around the principle of exhaustion of rights, which stipulates that trademark rights are not exhausted unless the goods are first introduced into the EEA market by the trademark holder or with their consent.
The lower court initially dismissed the charges, citing insufficient evidence of harm and a purported lack of public interest. However, this decision was appealed by our client, the prosecution as well as the defendant.
Key Legal Findings
The Regional Court overturned the lower court's dismissal, emphasizing the following points:
1.Trademark Rights in the EEA: The importation of goods bearing a trademark, even if genuine, from outside the EEA without the consent of the trademark holder infringes the holder's rights. This holds true even if the goods are genuine and intended for resale within the EEA.
2. Social Harm and Economic Impact: The court highlighted the broader implications of unauthorized imports. Such actions disrupt market order, undermine brand integrity, and expose trademark holders to financial losses, including reduced licensing revenues and potential damage to reputation due to unauthorized modifications or loss of warranty.
3. Role of the Importer's Intent: The defendant's intent to profit from selling these goods without adding value, while circumventing established IP protections, was deemed significant. The lack of compliance with IP regulations was seen as an intentional act to bypass legal restrictions for economic gain.
4. Consumer Protection: The court noted potential consumer harm, including difficulties in exercising warranty claims or obtaining after-sales support. Unauthorized imports can lead to confusion and dissatisfaction, reflecting poorly on the trademark holder rather than the importer.
Implications for Businesses
This decision serves as a critical reminder for businesses operating across UK-EU borders post-Brexit. Companies must ensure compliance with trademark laws when importing branded goods into the EU. The following practices are essential:
- Verify that goods have been authorized for sale within the EEA by the trademark holder.
- Maintain detailed records of product origins and distribution agreements.
- Avoid unauthorized modifications to imported products to meet EEA standards (eg. plugs).
Conclusion
The ruling by the Regional Court underscores the continued enforcement of IP rights within the EU, even in cases involving genuine goods. Businesses must prioritize adherence to trademark regulations to avoid legal repercussions and protect the integrity of the brands they trade. This case serves as a landmark reminder of the legal boundaries governing cross-border trade in branded goods.
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.
