EU Trademark Reforms

EU Trademark Reforms

Despite reservation from the UK and Ntherlands EU Trademark Reforms have been approved by The European Council The dissenting voices are concerned about  the use of a potential budget surplus and measures enabling trademark owners to halt counterfeit goods in transit.

Key features of the EU Trademark reforms

1. Reduction of Community Trademark (CTM) renewal fees
2. Improved rights for trademark owners to stop infringing goods in transit
3. Removal of the requirement that marks need to be represented graphically.

The UK concerns:

 Potential future budget surplus generated at OHIM may be diverted to the general EU budget and used for non intellectual property-related purposes. “We cannot support the regulation since it includes a provision that enables the transfer of future surpluses accumulated from trademark and design fees to the general EU budget. Research has suggested that IP-rich industries contribute 39% of the EU’s GDP, with trademarks a significant part of this. We must nurture and protect this contribution to retain our competitiveness: therefore we should not divert money which came from IP to other uses,” the UK said.

Netherlands concerns:

The provision tackling counterfeit goods in transit would burden the country where the products are merely in transit. “The proposed measure will put a disproportionate and unnecessary burden on holders of goods and an impediment to legitimate international trade, including for legitimate generic medicines. Although the Netherlands supports the battle against counterfeiting as this undermines trade, IP rights, etc, the proposed measure for detaining goods in transit is unacceptable.

Another vote is due before the end of the year.