TAE warns that a ruling on the trademark rights to a small bread roll could have serious consequences for the European economy.

Brussels. The European Taxpayers’ Association (TAE) has been following case C 409/12 for some time. Behind this reference number lies a trade mark dispute with potentially negative consequences for the entire European economy. The Austrian company Backaldrin is fighting in this case to retain the trade mark rights to its ‘Kornspitz’ product. The latest ruling confirms the TAE’s fears. The judges contradicted case law in Austria and Germany, as well as the position of the European Commission and France, according to which the perception of intermediaries and retailers is also decisive for maintaining a product’s trade mark protection.

In the preliminary ruling proceedings, the European Court of Justice (ECJ) ruled that consumer perception alone is decisive for the protection of a trade mark. “If the national courts in Austria, where the case is now being heard, follow the position of the European Court of Justice, the trade mark rights of countless European companies will be at risk,” warns Rolf von Hohenhau, President of the European Taxpayers’ Association. “In the worst-case scenario, it would no longer be possible to assert trademark claims against other companies or retailers,” said Hohenhau. In many cases, he added, it is simply impossible to influence consumer perception, particularly for small businesses.

The protection of trade marks and ideas is the foundation of successful business activity. Rolf von Hohenhau: “Our European companies must be able to trust that their trade marks, as well as their ideas and innovations, are legally protected.” The rules must be clear and comprehensible and must not depend on the “random perceptions” of end consumers.

“It is now up to the legislator to clarify the situation and establish clear standards for trade mark protection,” concluded Hohenhau.