Summary
An online marketplace operator uses a third party’s sign in its own commercial communication where a well-informed and reasonably observant user would link the operator’s services with the sign. The assessment is holistic. It includes the presentation of third-party content and the nature and scope of the operator’s services.
Trade mark use may occur after sale. Dial branding displayed on a smartwatch can distinguish the smartwatch’s origin to third parties even though its owner knows the true manufacturer.
The hosting safe harbour applies only where the provider’s role is merely technical, automatic and passive. An operator whose active involvement gives it knowledge of and control over infringing content falls outside that protection.
Factual background
Members of the Swatch group alleged that third-party watch-face apps available through Samsung’s Galaxy App store infringed their trade marks. The apps displayed identical or similar signs in the conventional dial-branding position on Samsung smartwatches.
Falk J held in [2022] EWHC 1127 (Ch) that most of the apps infringed and that Samsung was primarily liable. Samsung appealed on whether it had itself used the signs, whether the signs were used in relation to smartwatches as well as apps, and whether regulation 19 of the Electronic Commerce (EC Directive) Regulations 2002, implementing article 14(1) of the e-Commerce Directive, protected it from financial remedies.
Held
Appeal dismissed. The judge was entitled to find that Samsung used the disputed signs in its own commercial communications. The correct inquiry was whether a well-informed and reasonably observant user would establish a link between Samsung’s services and the signs. The presentation of the apps and the nature and scope of Samsung’s services were particularly important. Samsung operated the store, mixed its own and third-party apps, reviewed every app, promoted the availability of watch faces, assisted developers, shared revenue and provided support. Its role went beyond creating technical conditions for third-party use.
The judge correctly considered circumstances which, although not themselves known to consumers, affected their perception of the signs. Her multifactorial assessment was consistent with the approach in Louboutin. The presence of a developer’s name did not require a different conclusion because consumers might neither see it nor understand it as identifying a separate trade origin.
The signs were also used in relation to smartwatches. Trade mark use is not confined to the point of sale. A sign can function after sale as a badge of origin for third parties encountering the goods. Dial branding on a realistic digital watch face could lead an observer to understand the sign as identifying the smartwatch’s origin. The infrequency or short duration of such encounters did not alter that conclusion.
Article 9(3) of Regulation 2017/1001 contains an open-ended description of acts of use. It was unnecessary to establish that Samsung itself “affixed” the signs. It was sufficient that Samsung used the signs contained in the apps in relation to smartwatches.
Samsung’s acts fell outside article 14(1) of the e-Commerce Directive. Its active role gave it knowledge of and control over the disputed content. Its conduct was not merely technical, automatic and passive. The hosting exemption therefore did not protect Samsung from financial remedies.
The court did not decide the separate question whether Samsung was aware of facts or circumstances from which illegality was apparent under article 14(1)(a). Lewison LJ, expressly obiter, considered that this inquiry requires actual awareness of particular facts or circumstances, followed by an assessment of whether illegality was readily identifiable to a diligent economic operator from those facts alone. Elisabeth Laing LJ expressed no view on that issue.
The court’s approach to earlier authorities
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Appellate history
- Court of Appeal (Civil Division): The appeal was dismissed. The court upheld the findings that Samsung used the signs in relation to the apps and smartwatches and that article 14(1) of the e-Commerce Directive did not apply.
- High Court, Intellectual Property List: Falk J held in [2022] EWHC 1127 (Ch) that most of the disputed apps infringed the claimants’ trade marks and that Samsung was primarily liable. She granted an injunction and rejected Samsung’s defence to financial remedies.
Appeal route
- Appealed from[2022] EWHC 1127 (Ch)This appealappeal dismissed
- This judgment [2023] EWCA Civ 1478 Court of Appeal (Civil Division)
Key cases cited
18 authorities cited.
- Prescott v Potamianos & Anor [2019] EWCA Civ 932
- The London Taxi Corporation Ltd (t/a the London Taxi Company) v Frazer-Nash Research Ltd & Anor [2017] EWCA Civ 1729
- Specsavers International Healthcare Ltd & Ors v Asda Stores Ltd [2012] EWCA Civ 24
- Thomas Pink Limited v Victoria's Secret UK Ltd [2014] EWHC 2631 (Ch)
- Cosmetic Warriors Ltd & Anor v amazon.co.uk Ltd & Anor [2014] EWHC 181 (Ch)
- Datacard Corporation v Eagle Technologies Ltd [2011] EWHC 244 (Pat)
- Louboutin v Amazon Europe Core Sàrl [EU:C:2022:1016]
- Peterson v Google LLC (Elsevier Inc v Cyando AG) Joined Cases C-682/18 and C-683/18
- Coty Germany GmbH v Amazon Services Europe SÀRL Case C-567/18
- TOP Logistics BV v Bacardi & Company Ltd [EU:C:2015:497]
- L’Oréal SA and Ors v eBay International BV and Ors [2011] RPC 27
- Frisdranken Industrie Winters BV v Red Bull GmbH [EU:C:2011:837]
- Google France SARL v Louis Vuitton Malletier SA (Google France SARL v Centre national de recherche en relations humaines (CNRRH) SARL, Google France SARL v Viaticum SA) Joined cases C-236/08 to C-238/08
- Céline SARL v Céline SA [2007] ETMR 80
- Ruiz-Picasso v Office for Harmonisation in the Internal Market [2006] ECR I-643
- Anheuser-Busch Inc v Budĕjovický Budvar np [2004] I-10989
- Arsenal Football Club plc v Reed Case C-206/01
- BMW v Deenik [1999] ECR I-905
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Cases citing this case
8 later cases · 5 positive · 3 neutral
Most senior citing decisions:
- Iconix Luxembourg Holdings SARL v Dream Pairs Europe Inc and another [2025] UKSC 25 approved
- Shorts International Ltd v Google LLC [2026] EWCA Civ 668 applied
- Aga Rangemaster Group Ltd v UK Innovations Group Ltd & Anor [2025] EWCA Civ 1622 considered
- Iconix Luxembourg Holdings SARL v Dream Pairs Europe Inc & Anor [2024] EWCA Civ 29
- Roadget Business Pte Ltd & Anor v Whaleco UK Limited [2026] EWHC 2165 (Ch)
- Dryrobe Limited v Caesr Group Limited [2025] EWHC 3167 (IPEC)
- Abbott Diabetes Care Inc v Sinocare Inc & Ors [2025] EWHC 206 (Ch)
- AGA Rangemaster Group Limited v UK Innovations Group Limited & Anor [2024] EWHC 1727 (IPEC)
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