Summary
Keyword bidding is use of the searched trade mark, distinct from the consequences of the resulting advertisement. Infringement depends on whether the advertisement enables normally informed and reasonably attentive internet users to determine, without difficulty, whether the goods originate from the trade mark proprietor or an unconnected third party.
Honest concurrent use may tolerate inevitable confusion where two traders have honestly used the same or closely similar marks and the mark indicates both businesses. It does not permit a defendant to bid on the claimant’s mark where the defendant has never used that mark as its own and the mark remains an exclusive indication of the claimant. A substantial increase in bidding which exacerbates confusion and encroaches on goodwill is not honest concurrent use.
Factual background
The claimant, an online bathroom retailer, sued the defendants for trade mark infringement arising from the first defendant’s bidding on keywords incorporating the claimant’s “Victoria Plum” and “Victoria Plumb” marks. The resulting advertisements used signs including “Victorian Plumbing” and “Victoria Plumbing”. The claimant also pursued related claims concerning keyword advertising and the second defendant’s alleged joint liability.
The defendants relied principally on honest concurrent use, and alternatively on estoppel and statutory acquiescence. They counterclaimed for passing off based on the claimant’s bidding on “Victorian Plumbing”. The central issues were whether the advertisements failed the Google France origin-function test, whether honest concurrent use applied to bidding on another trader’s mark, and whether the second defendant was jointly liable.
Held
- Trade mark infringement. The first defendant’s bidding on “Victoria Plum”, “Victoria Plumb” and immaterial variants constituted use of signs identical or materially similar to the claimant’s marks. The relevant use was distinct from the resulting advertisements, but infringement required application of the origin-function test in Google France and Interflora.
- The advertisements, which prominently used “Victorian Plumbing” or “Victoria Plumbing” without indicating an absence of connection, did not enable normally informed and reasonably attentive internet users to identify the commercial origin of the goods without difficulty. The similarity of the signs, identical goods and services, the claimant’s enhanced distinctive character and unusually high click-through rates established confusion on a substantial scale.
- Honest concurrent use. The doctrine may apply to closely similar marks. It tolerates inevitable confusion where honest long-standing use means that a mark indicates the goods or services of two entities, but the defendant must not exacerbate confusion beyond the inevitable level or encroach on the claimant’s goodwill. It cannot justify use of the claimant’s mark where the defendant has never used it as its own and accepts that it exclusively denotes the claimant. The first defendant’s substantial increase in keyword expenditure from late 2012, its knowledge of the similarity, the absence of a satisfactory explanation and the high click-through rates showed dishonest use.
- Estoppel and statutory acquiescence failed. The claimant made no representation that the first defendant was entitled to bid on its marks, and the first defendant had no earlier right in those marks for the purposes of Trade Marks Act 1994, section 48.
- The claim against the second defendant failed because his general managerial responsibility and high-level knowledge did not establish assistance pursuant to a common design as required by Sea Shepherd UK v Fish & Fish Ltd.
- The counterclaim for passing off succeeded. Users searching for “Victorian Plumbing” were likely to expect the first defendant’s website, and the claimant’s advertisements created a misrepresentation with a likelihood of damage.
The court’s approach to earlier authorities
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Appellate history
First-instance decision. No prior appellate decision is stated in the judgment.
Key cases cited
12 authorities cited.
- Sea Shepherd UK v Fish & Fish Limited [2015] UKSC 10
- Maier & Anor v Asos Plc & Anor [2015] EWCA Civ 220
- IPC Media Ltd v Media 10 Ltd [2014] EWCA Civ 1439
- Interflora Inc & Anor v Marks and Spencer Plc (Rev 1) [2014] EWCA Civ 1403
- Budejovicky Budvar Narodni Podnik v Anheuser -Busch Inc [2012] EWCA Civ 880
- Hotel Cipriani Srl & Ors v Cipriani (Grosvenor Street) Ltd & Ors [2010] EWCA Civ 110
- Phones4u Ltd & Anor v Phone4u.Co.UK & Ors [2006] EWCA Civ 244
- Hotel Cipriani SRL & Ors v Cipriani (Grosvenor Street) Ltd & Ors [2008] EWHC 3032 (Ch)
- Budejovický Budvar, národní podnik v Anheuser-Busch Inc Case C-482/09
- Portakabin Ltd v Primakabin BV Case C-558/08
- Google France SARL v Louis Vuitton Malletier SA [2010] ETMR 30
- Cadbury Schweppes Pty Ltd v Pub Squash Co Pty Ltd [1981] 1 WLR 193
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Cases citing this case
9 later cases · 8 positive · 1 neutral
Most senior citing decisions:
- EasyGroup Limited v Nuclei Limited & Ors [2023] EWCA Civ 1247 approved
- Match Group, LLC & Ors. v Muzmatch Limited & Anor. [2023] EWCA Civ 454 considered
- Gnat and Company Limited & Anor. v West Lake East Limited & Anor. [2022] EWHC 319 (IPEC) applied
- COMBE INTERNATIONAL LLC v DR AUGUST WOLFF GMBH & CO. KG ARZNEIMITTEL [2021] EWHC 3347 (Ch)
- ABP TECHNOLOGY LIMITED v VOYETRA TURTLE BEACH, INC. [2021] EWHC 3096 (Ch)
- Cormeton Fire Protection Ltd v Cormeton Electronics Ltd & Anor [2021] EWHC 11 (IPEC)
- Bentley 1962 Ltd & Anor v Bentley Motors Ltd [2019] EWHC 2925 (Ch)
- Walton International Ltd & Anor v Verweij Fashion BV [2018] EWHC 1608 (Ch)
- Inter Export LLC v Townley & Anor [2017] EWHC 530 (Ch)
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