INTA and Marques criticise proposals for OHIM's surplus budget

A group of trade associations has criticised proposals that could see some of the Office for Harmonization in the Internal Market's (OHIM) multi-million euro surplus budget spent on "non-IP related purposes".

The International Trademark Association and Marques are two of eight organisations that have voiced concerns over proposals that they claim “could seriously damage the European trademark system instead of improving it” if they are implemented.

The European Commission, Parliament and Council have been discussing reforms to the European trademark system, including where to divert funds from OHIM's surplus budget. In December last year the talks were delayed until further notice.

During the talks, it had been proposed that some of the surplus budget at OHIM should be diverted to the EU budget, the European School of Alicante and the Court Justice of the European Union.

According to the European Communities Trade Mark Association, which has also opposed the plans, the estimated surplus budget is between €200 million ($213 million) and €600 million.

In a letter published on Wednesday (April 8) the organisations cast doubt on the legality of diverting funds to the proposed areas.

The letter said: “The fees paid by users [of OHIM] are the sole reason for this surplus. Diverting those fees to non-IP related purposes was not legally permissible under the Community Trade Mark Regulation.

“The undersigned organisations remain strongly opposed to most of these moves,” they added.

In response, the groups have called on the surplus to be “used to improve the trademark and designs system” and have proposed that OHIM also reduces its renewal fees for trademark owners.

Last month, some of the organisations sent an e-mail to members of the European Parliament’s legal affairs committee addressing similar concerns.

They wrote: “Trademark reform is meant to achieve a European trademark system which is efficient, harmonised and affordable to all users. And the surplus should be used to finance the implementation of the trademark reform and to continue improving OHIM’s services.”

The other six organisations that have opposed the plans are: The European Federation of Pharmaceutical Industries and Associations; Toy Industries of Europe; Business Europe; the European Brands Association; AmCham EU and the Association of Trade Mark and Design Law Practitioners.

OHIM declined to comment.