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22 April 2015Trademarks

European bodies agree on package of trademark reforms

The bodies discussing reforms to the European trademark system have announced a provisional agreement that would see changes including reduced renewal fees for Community trademarks (CTM) and greater harmonisation across EU trademark offices.

The European Commission, the Parliament and Council, the three parties involved in what have been referred to as “trilogue discussions”, agreed on the package yesterday (April 21).

As part of the proposals, renewal fees for CTMs would be reduced from €1,500 ($1,613) to €850.

Cecilia Wikström, a member of the European parliament (MEP) for the Swedish Liberal People’s Party, and responsible for pushing the legislation through the parliament, told WIPR that reducing the renewal fees would “ avoid generating another surplus” at the Office for Harmonization in the Internal Market (OHIM).

OHIM’s current annual budget is €190 million but it has a surplus of around €300 million.

The International Trademark Association (INTA), Marques and other trade associations were concerned by proposals previously raised in the trilogue that the budget surplus could be directed “beyond intellectual property services”, including to the European school of Alicante and the Court of Justice of the European Union.

But Wikström said that the “interests of European businesses” was her priority and described the package as modernising the existing European trademark system.

“The budget surplus was generated by trademark owners and it should go back to them,” she said.

In the proposed package, a portion of OHIM’s budget would be directed towards co-operation projects with national IP offices.

The money available for these projects would be limited to 15% of OHIM’s annual revenue.

In addition to the reduction in fees, the number of classes brand owners can apply to one CTM application would be reduced from three to just one. There would also be stronger measures to tackle counterfeit goods in transit.

OHIM would also be renamed the European Union Intellectual Property Office.

The package has had a warm response so far from members of the IP community.

David Stone, partner at law firm Simmons and Simmons, told WIPR that the “fall in renewal fees is very welcome” and that “trademark owners will welcome many of the reforms”.

J. Scott Evans, president of INTA, also welcomed the reduction in fees, but said his organisation would have liked to have seen an administrative procedure introduced at national IP offices that enables parties to oppose a CTM application.

The agreement will now head towards the parliament’s Committee on Legal Affairs and will also need to be officially endorsed by the council and parliament. It is likely to reach the full parliament in September, where it will be voted on by MEPs.

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