Summary
Trade mark consent requires actual consent, demonstrated unequivocally by the proprietor’s renunciation of its exclusive rights. A merely implied contractual term, or consent deemed by national law, is insufficient, although an implied term may provide evidence of actual consent. National-law estoppel cannot circumvent the exclusive rights conferred by the Community trade mark regime. Fact-sensitive defences based on likelihood of confusion, reputation and honest practices may have a real prospect of success even where success is improbable, making summary judgment inappropriate. In that situation, the court may impose conditional security for pursuing the defences to trial.
Factual background
The claimant sought summary judgment in a trade mark infringement claim. It owned the “Marussia” trade mark, had licensed its use to the first defendant for Formula One racing until 31 December 2014, and alleged that the defendant continued using the mark during the 2015 season after the licence expired.
The defendant relied on implied consent, estoppel, absence of likelihood of confusion, absence of the required reputation, and the own-name defence based on honest practices. The application did not concern the passing-off claim or other claims involving the additional parties. The central questions were which defences had no real prospect of success and whether the remaining defences, although improbable, should proceed to trial subject to security.
Held
Application granted in part. The consent defence had no real prospect of success. The estoppel defence was unavailable as a matter of law. The Article 9 and Article 12 defences had a real prospect of success, although success was improbable, and could proceed only if security of £1.75 million was provided.
- Consent. Under the Council Regulation (EC) No 207/2009 on the Community trade mark, consent has an autonomous Community meaning. Following Zino Davidoff SA v A&G Imports Ltd and Levi Strauss & Co v Tesco Stores Ltd [2002] Ch 109, there must be actual consent, demonstrated unequivocally as a renunciation of exclusive rights. A contractual term implied under English law may be evidence of consent, but does not itself establish the actual consent required. No term could be implied: the agreement was coherent without a licence, its duration was indeterminate, and carefully drafted written agreements omitted the subject.
- Estoppel. The Regulation formed a complete code concerning the proprietor’s exclusive rights. Estoppel by acquiescence operated as a substantive deemed-consent defence, not merely as a procedural or evidential rule under Article 101(3). It therefore could not defeat Article 9 rights. The judge’s observations that the estoppel would in any event have been improbable were alternative and unnecessary.
- Article 9.1(b). Likelihood of confusion required a global assessment through the eyes of the average consumer. The relevant public was not confined to Formula One insiders. Continued use of a previously licensed mark could lead the public to believe that an economic link remained. Nevertheless, the issue was evidential and required trial determination.
- Article 9.1(c) and Article 12. Reputation was not dependent on actual sales. The Article 9.1(c) requirements included reputation, a link, injury and absence of due cause. The broad honest-practices inquiry under Article 12 was similarly unsuitable for summary judgment. Both defences were improbable but had a sufficient prospect of success to require trial.
- Security. The court could make a provisional assessment of likely damages by reference to a reasonable licence negotiation, without determining the final remedy. Security was fixed at £1.75 million as a condition of pursuing the Article 9 and Article 12 defences.
The court’s approach to earlier authorities
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Key cases cited
22 authorities cited.
- Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Limited and another [2015] UKSC 72
- Pell Frischmann Engineering Limited v Bow Valley Iran Limited and others (Jersey) [2009] UKPC 45
- Attorney-General v Blake (Jonathan Cape Ltd, Third Party) (Jonathan Cape Ltd (Third Party)) [2001] 1 AC 268
- BP Refinery (Westernport) Pty Ltd v The President Councillors and Ratepayers of the Shire of Hastings (1977) 180 CLR 266
- Hoyl Group Ltd v Cromer Town Council [2015] EWCA Civ 782
- Maier & Anor v Asos Plc & Anor [2015] EWCA Civ 220
- Bank Leumi (UK) Plc v Akrill [2014] EWCA Civ 907
- Specsavers International Healthcare Ltd & Ors v Asda Stores Ltd [2012] EWCA Civ 24
- Mastercigars Direct Ltd v Hunters & Frankau Ltd & Ors [2007] EWCA Civ 176
- Red Bull GmbH v Sun Mark Ltd & Anor [2012] EWHC 1929 (Ch)
- Group Lotus Plc & Anor v 1Malaysia Racing Team SDN BHD & Ors [2011] EWHC 1366 (Ch)
- Vercoe & Ors v Rutland Fund Management Ltd & Ors [2010] EWHC 424 (Ch)
- Honda Motor Co Ltd & Anor v Neesam & Ors [2008] EWHC 338 (Ch)
- Honda Motor Co Ltd v Neesam [2006] EWHC 1051 (Ch)
- Martin Y Paz Diffusion SA v Depuydt Case C-661/11
- Adidas-Salomon AG v Fitnessworld Trading Ltd Case C-408/01
- Davidoff & Cie SA v Gofkid Ltd Case C-292/00
- Zino Davidoff SA v A & G Imports Ltd (Levi Strauss & Co v Costco Wholesale UK Ltd, Levi Strauss & Co v Tesco Stores Ltd) Joined cases C-414/99 to C-416/99
- Philips Electronique Grand Public SA v British Sky Broadcasting Ltd [1995] EMLR 472
- Taylors Fashions Ltd v Liverpool Victoria Trustees Co Ltd (Note) (Old & Campbell Ltd v Liverpool Victoria Friendly Society) [1982] QB 133
- Moorgate Mercantile Co Ltd v Twitchings [1977] AC 890
- Wrotham Park Estate Co Ltd v Parkside Homes Ltd [1974] 1 WLR 798
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Cases citing this case
8 later cases · 6 positive · 1 neutral · 1 caution
Most senior citing decisions:
- Quantum Advisory Limited v Quantum Actuarial LLP [2024] EWCA Civ 247 applied
- Easygroup Ltd v Easy Live (Services) Limited & Ors [2024] EWHC 2282 (Ch) approved
- Noel Redding Estate Limited & Anor v Sony Music Entertainment UK Limited [2024] EWHC 128 (Ch) mentioned
- Quantum Advisory Limited v Quantum Actuarial LLP [2023] EWHC 47 (Ch)
- Urbanbubble Limited & Ors. v Urban Evolution Property Management Limited & Ors. [2022] EWHC 134 (IPEC)
- Cormeton Fire Protection Ltd v Cormeton Electronics Ltd & Anor [2021] EWHC 11 (IPEC)
- Russell v Cartwright & Ors [2020] EWHC 41 (Ch)
- Argos Ltd v Argos Systems Inc [2017] EWHC 231 (Ch)
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