Brexit and Brands Dr. Wiebke Baars - Taylor Wessing

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Brexit and Brands Dr. Wiebke Baars - Taylor Wessing
Brexit and Brands
                                  Dr. Wiebke Baars

                                  Mittwoch, 13. Februar 2019

Private and Confidential
Brexit and Brands Dr. Wiebke Baars - Taylor Wessing
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    23 June 2016

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Brexit and Brands Dr. Wiebke Baars - Taylor Wessing
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    Brexit - indicative timeline
                                                                                                                Transition period?

                                   2017                                        2018                               2019

          29 March 2017         8 June 2017                        Autumn 2018           Vote failed,          30 March 2019
             Article 50          UK general                      Finish withdrawal     discussions and      UK leaves EU unless
             triggered            election                       negotiations and        negotiations     otherwise agreed – WA or
                                                                  shape for future         ongoing                No Deal

                                                             Early 2018       11 December         Before March 2019            31 December
                   29 April 2017             June 2017                                                                                            June 2022
                                                                                  2018
               European Council adopt       Face to face UK “Great Repeal                         European Parliament               2020
                                                                                                                                                 Scheduled UK
                                                                              UK parliament
                negotiating guidelines    negotiations begin Act” passed                                vote on deal          Transition period
                                                                                                                                                general election
                                                                                 vote on            (if UK parliament         ends (extendable
                                                                               Withdrawal            have agreed it)          by up to 2 years)
                                                                               Agreement

                                                                                                                                                                   3
Brexit and Brands Dr. Wiebke Baars - Taylor Wessing
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    Brexit scenarios

                           AG opinion - UK can rescind Article 50 notification unilaterally!
    1. No Brexit!          ???

    2. Deal - current      Transition period from 29/3/2019 to 31/12//2020 or later – business as usual
       Withdrawal          Pan-EU rights in the UK - Withdrawal Act sets out minimum standards; UK legislation will flesh out detail
       Agreement           Pan-EU rights in EU - EUIPO Q&A relevant but ECJ will ultimately decide

                           UK leaves the EU on 29/2019
                           EU law ceases to apply in the UK immediately
    3. No Deal             Pan-EU rights in the UK - No Withdrawal Agt; The Trade Marks (Amendment etc.) (EU Exit) Regulations 2018 apply       NEW!
                           Pan-EU rights in the EU - EUIPO Q&A relevant but ECJ will ultimately decide

                           Defer exit by e.g. 3 months to allow further negotiations?
    4. Deal – other        Still likely to be a transition period?
                           Likely to be the same as 2. from an IP perspective

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Brexit and Brands Dr. Wiebke Baars - Taylor Wessing
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    Two relevant scenarios for IP
                           No Deal                                                     Deal
                       UK exits 29/3/2019                                   UK exits 31/12/2020 or later

             How will pan-EU rights be dealt with?                    How will pan-EU rights be dealt with?

              In the UK                     In the EU                 In the UK                     In the EU

          The Trade Marks           EUIPO Q&A guidance          Withdrawal Agreement          EUIPO Q&A guidance
      (Amendment etc.) (EU Exit)    relevant but CJEU will        + UK legislation to         relevant but CJEU will
          Regulations 2018            ultimately decide –       implement & flesh out           ultimately decide –
          (the Regulations)               v. uncertain       (similar to the Regulations?)          v. uncertain

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    Comparison

     Issue            No Deal Brexit                                                  Deal Brexit
     EUTM             UK comparable registration                                      As for No Deal Brexit
                       Automatic & for free                                          No mention of opt out - yet
     Registrations     No loss of priority, filing or seniority dates
                       Opt out possible              NEW!
                      EUTM - EU27 only

     EUTM             9 month priority for UK application                             As for No Deal Brexit
                       No loss of priority, filing or seniority dates
     Applications      All objections/oppositions dealt with again
                      EUTM application - EU27 only

     Internationals   As above but UK talking to WIPO                                 As for No Deal Brexit

     Use              Pre-exit use of EUTM anywhere in EU counts as use of            No revocation of comparable UKTM on basis that
                      comparable UKTM post-exit                                       corresponding EUTM not used in UK pre-exit
                      Pre-exit use in UK counts, in principle, as use of EUTM         As for No Deal Brexit
                      post-exit – CJEU decision required
     Reputation       Comparable UKTM benefits (post-exit) from pre-exit reputation   As for No Deal Brexit
                      of EUTM in EU
                      Unclear if EUTM benefits (post-exit) from pre-exit rep. in UK   As for No Deal Brexit

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    Comparison

    Issue              No Deal Brexit                                                Deal Brexit
    Attacks on EUTMs   Only prior rights in existence at decision date relevant –    As for No Deal Brexit

                       Results of EUTM invalidity/revocation actions do not affect   Results of pending EUTM invalidity/revocation actions apply to
                       comparable UKTM                                               UK comparable right (if grounds apply to UK)

    Attacks on UKTMs   Prior EUTMs filed pre-exit probably still taken into          Likely to be same as for No Deal Brexit
                       account in post-exit opposition/invalidity actions     NEW!

    Infringement –     Confined to UK                                                As for No Deal Brexit (but will there be a separate deal on this?)
    UK courts
                       If action pending at exit for infringement in UK of EUTM -    Likely to be the same as for No Deal Brexit
                       action continues under EUTM (+ UK court can invalidate/
                       revoke comparable UKTM if c/c for invalidity/revocation of
                       EUTM and grant injunction re comparable UKTM)
                                                                              NEW!
                       UK not bound by ECJ preliminary rulings post-exit             UK bound by post-exit ECJ preliminary rulings requested by the
                                                                                     UK pre-exit
    Infringement -     Cannot decide infringement of EUTM in UK                      As for No Deal Brexit (but will there be a separate deal on this?)
    member states
    courts             UK will recognise existing injunctions unless court orders    Likely to be the same as No Deal Brexit
                       otherwise
                                      NEW!

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    No Deal: What to do now about filing
    1.   Urgent action?
                                                                                                                            1.35m registered EUTMs
           ˃   Yes – if no Deal – UK out on 29 March 2019
                                                                                                                             86,000 pending EUTMs

    2.   EUTM registrations                                                                                             615,000 registered UKTMs
           ˃   No need to re-file as UKTM or IR(UK)
                                                                                                                         28,000 pending UKTMs
           ˃   Opt out?

    3.   EUTM applications that are pending now
           ˃   If will register by 29/3/2019, almost certainly no need to refile separate UKTM or IR(UK)

           ˃   If wont register by 29/3/2019 – no general need to refile separate UKTM or IR(UK) now; better to wait so as to preserve priority/filing date

               ˃    Exception – if UK protection is required urgently and any loss of priority is not problematic

           ˃   Potentially wasted if Deal Brexit

                                                                                               EUTM filed on 1/1/2015 but       9 months to file same mark in UK -
                                                                                               still pending on 29/3/2019       deemed filing date will be 1/1/2015

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    No Deal: What to do now about filing

    4.   EUTM applications you are about to file now
           ˃   Unlikely to register by 29/3/2019 even filed on "fast track"
           ˃   Consider filing UKTM or IR(UK) now rather than having to refile post-29/3/2019 relying on the 9 month priority period –
               ˃   Worthwhile if UK protection required urgently
               ˃   Potentially wasted if Deal Brexit

                                                                                                                  EUTM registered on 1/1/2015 used
                                                                                                                 throughout UK only. Intend to use on
                                                                                                                continent from 2020. Important brand.
                                                                                                                      Consider refiling as EUTM.

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    Parallel imports
       Rights exhausted pre-exit remain exhausted - Deal and probably also No Deal

       No Deal - The Intellectual Property (Exhaustion of Rights) (EU Exit) Regulations 2018 - current regime continues for UK

        ˃   "UK will unilaterally align to the EU/EEA exhaustion regime from Exit day to provide continuity in the immediate term for businesses and consumers
            and ensure that parallel imports of goods, such as pharmaceuticals, can continue from the EU/EEA."

        ˃   "We’re currently considering all options for how the exhaustion regime should operate after this temporary fix."

        ˃   "Any substantial changes to the exhaustion regime will occur only after a full research programme and consultation."

       Assuming the EU does not reciprocate

        ˃   Goods put on the market in the EU/EEA will be able to circulate into the UK

        ˃   Goods put on the market in the UK will not be able to circulate around the rest of the EU/EEA

        ˃   Benefits those in the UK who rely on importing goods from the EU/EEA e.g. for sale on the domestic market

        ˃   Not so good for many UK-based rights holders and distributors who will have to compete with EU/EEA imports on the domestic market but may not be
            able to sell into the EU/EEA themselves

       What regime to adopt going forwards? UK only (national exhaustion), EU/EEA (regional exhaustion) or anywhere (international exhaustion)

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    IP-related agreements
     Might need amending
     No Deal helps
     Any licence in existence on 29/3/2019 which authorise the doing of acts in the UK which would otherwise infringe an EUTM:
       ˃   continues to authorise the doing of acts in the UK which would otherwise infringe the comparable UKTM which derives from the
           existing EUTM
       ˃   subject to the terms on which the relevant licence was granted
       ˃   subject to any agreement to the contrary between the licensee and the licensor
       ˃   with such modifications to the terms as are necessary for their application in the UK
     Similar for consents (and documents re. security interests)
     References to an existing EUTM in any document made before exit day shall, unless there is evidence that the document was not
      intended to have effect in the UK, be read on and after exit day as including references to the comparable UKTM
     Still need to review agreements – depends how drafted, governing law, jurisdiction, co-existence (will not clauses…)?

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    Top tips

    1. Try to get all EUTMs registered before 29/3/2019
    2. Consider separate UK or IR(UK) application if EUTM wont register by 29/3/2019 and (i) UK protection required quickly and (ii) no
       problems if any loss of priority
    3. Renew/maintain all UK rights unless clearly irrelevant to the business
    4. Consider what advantages/disadvantages exist from accelerating or delaying disputes involving UK and EU rights
    5. Make sure mix of UK and non-UK prior rights relied upon if attacking EUTM or UKTM
    6. Carefully consider strategy for EUTM infringement actions
    7. Get business lobbying e.g. on parallel imports?
    8. Review all agreements (e.g. co-existence agreements)
    9. Record assignments, licences and security interests at UKIPO
    10. Review budgets – new filings, possible need for separate actions!

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    It all comes down to…

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    Ihre Ansprechpartnerin
                                        Wiebke Baars ist spezialisiert auf die Beratung und Prozessführung im gewerblichen Rechtsschutz und Wettbewerbsrecht. Ihr Tätigkeitsbereich
                                        umfasst weiterhin die Betreuung von deutschen, europäischen und internationalen Markenanmeldungen sowie die Durchführung von Widerspruchs-
                                        und Beschwerdeverfahren vor dem DPMA und dem EUIPO. Insbesondere im Markenrecht gestaltet sie seit vielen Jahren Lizenz- und
                                        Abgrenzungsvereinbarungen. Zu ihren Mandanten gehören deutsche und internationale Unternehmen aus dem Bereich der Medienwirtschaft sowie
                                        der Mode-, Spielwaren- und Lebensmittelindustrie.
                                        Wiebke Baars studierte in Hamburg Jura und Journalistik und legte in den Jahren 1994 und 2000 ihre juristischen Staatsexamina ab. 1997
                                        absolvierte sie das LL.M. Studium am University College London und promovierte 1999 zu einem rundfunkrechtlichen Thema.
    Dr. Wiebke Baars,                   Zu den Veröffentlichungen von Wiebke Baars gehört die Abhandlung "Kooperation und Kommunikation durch Landesmedienanstalten" (Nomos
    LL.M. (UCL)                         1999). Wiebke Baars veröffentlicht regelmäßig Beiträge in Fachzeitschriften. Darüber hinaus ist sie Dozentin im Rahmen der Fachanwaltsausbildung
    Partner                             gewerblicher Rechtsschutz zum Thema Designschutz.
    Hamburg                             Wiebke Baars ist Fachanwältin für gewerblichen Rechtsschutz. Sie wird im JUVE Handbuch und von den Legal 500 als häufig empfohlene Anwältin
    +49 40 36803-145                    im Marken- und Wettbewerbsrecht genannt.
    w.baars@taylorwessing.com
                                        Sie ist Mitglied der Gesellschaft für Urheberrecht und Gewerblichen Rechtsschutz GRUR und der International Trademark Organisation INTA. Dort
                                        ist Wiebke Baars Mitglied des GI Committee.
    Beratungsschwerpunkte
     Trade Marks & Designs             Sprachen
     Urheber- & Medienrecht             Deutsch, Englisch

                                        “
     Litigation & Dispute Resolution

                                        „sehr gut im Markenrecht, durchsetzungsstark, auch in Verhandlungen, stets angenehm und fair“, „wirklich gute und empfehlenswerte IP-Rechtlerin“, Wettbewerber
                                        JUVE Handbuch 2018/2019
                                        Häufig empfohlen für Marken- und Wettbewerbsrecht, Legal 500 2018
                                        „Hervorgehoben als „Trade Mark Star“, Managing Intellectual Property 2018
                                        Hervorgehoben als Best Lawyer für Gewerblicher Rechtschutz und Werberecht, Best Lawyers in Germany, Handelsblatt 2018

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