imitation is costly - specsavers v asda 2 february...

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1 Imitation is Costly Specsavers v Asda 1. In Short In October 2009, Asda carried out a marketing campaign to relaunch its instore opticians making use of the straplines shown below. Specsavers sued for trade mark infringement. At first instance the Court held that Asda’s use of the First Strapline was infringing as it took unfair advantage of Specsavers’ marks but it rejected all other claims. The First Strapline The Second Strapline The Asda Logo The Court of Appeal (“CoA”) has just given its judgment and found that the Second Strapline and Asda Logo also infringe. However questions about the validity of the Specsavers logo registration (without words) were referred to the European Court. In our view this judgment is extremely favourable to wellknown brand owners, as even using ‘Asda’ in the Asda Logo below did not avoid the finding of infringement. The requirement to show the “link” with the famous brand suddenly seems much easier to prove and here we feel the Court went too far. The CoA were ready to look at the surrounding circumstances of the infringing use (rather than look at the Logo in isolation) and also said that where the same colour was being used, and that colour has become distinctive of the wellknown brand, then the case for infringement is stronger. As before, if a defendant has sought to target a brand, then that may help in proving the infringement case. In summary this judgment makes it easier for wellknown brands to sue “free –riders” or imitators. So if you are imitating a famous brand be warned, if you own one then be more confident! 2. Infringement based on a Likelihood of Confusion / Association The first infringement claim required a finding of similarity that would cause a likelihood of confusion / association. The CoA agreed with the High Court that neither of the straplines nor the logo would infringe. The CoA did, however, comment that if a brand has acquired distinctiveness for a particular colour then that will be a factor in deciding infringement under this ground (under the “global appreciation analysis”). It also asked the ECJ to comment on this issue.

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Page 1: Imitation is Costly - Specsavers v Asda 2 February 2012sipara.com/downloads/Imitation_Is_Costly.pdf · 2016-08-08 · Title: Microsoft Word - Imitation is Costly - Specsavers v Asda

 

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Imitation  is  Costly  -­‐  Specsavers  v  Asda  

1.   In  Short  

In  October  2009,  Asda  carried  out  a  marketing  campaign  to  re-­‐launch  its  in-­‐store  opticians  making  use  of  the  straplines  shown  below.    Specsavers  sued  for  trade  mark  infringement.    At  first  instance  the  Court  held  that  Asda’s  use  of  the  First  Strapline  was  infringing  as  it  took  unfair  advantage  of  Specsavers’  marks  but  it  rejected  all  other  claims.  

The  First  Strapline   The  Second  Strapline   The  Asda  Logo  

 

 

 

 

The  Court  of  Appeal  (“CoA”)  has  just  given  its  judgment  and  found  that  the  Second  Strapline  and  Asda  Logo  also  infringe.      However  questions  about  the  validity  of  the  Specsavers  logo  registration  (without  words)  were  referred  to  the  European  Court.  

In  our  view  this  judgment  is  extremely  favourable  to  well-­‐known  brand  owners,  as  even  using  ‘Asda’  in  the  Asda  Logo  below  did  not  avoid  the  finding  of  infringement.    The  requirement  to  show  the  “link”  with  the  famous  brand  suddenly  seems  much  easier  to  prove  and  here  we  feel  the  Court  went  too  far.    The  CoA  were  ready  to  look  at  the  surrounding  circumstances  of  the  infringing  use  (rather  than  look  at  the  Logo  in  isolation)  and  also  said  that  where  the  same  colour  was  being  used,  and  that  colour  has  become  distinctive  of  the  well-­‐known  brand,  then  the  case  for  infringement  is  stronger.    As  before,  if  a  defendant  has  sought  to  target  a  brand,  then  that  may  help  in  proving  the  infringement  case.  

In  summary  this  judgment  makes  it  easier  for  well-­‐known  brands  to  sue  “free  –riders”  or  imitators.    So  if  you  are  imitating  a  famous  brand  be  warned,  if  you  own  one  then  be  more  confident!  

2.   Infringement  based  on  a  Likelihood  of  Confusion  /  Association    

The  first  infringement  claim  required  a  finding  of  similarity  that  would  cause  a  likelihood  of  confusion  /  association.    The  CoA  agreed  with  the  High  Court  that  neither  of  the  straplines  nor  the  logo  would  infringe.  

The  CoA  did,  however,  comment  that  if  a  brand  has  acquired  distinctiveness  for  a  particular  colour  then  that  will  be  a  factor  in  deciding  infringement  under  this  ground  (under  the  “global  appreciation  analysis”).    It  also  asked  the  ECJ  to  comment  on  this  issue.  

   

Page 2: Imitation is Costly - Specsavers v Asda 2 February 2012sipara.com/downloads/Imitation_Is_Costly.pdf · 2016-08-08 · Title: Microsoft Word - Imitation is Costly - Specsavers v Asda

 

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3.   Infringement  based  on  taking  unfair  advantage  of  a  “Mark  with  a  Reputation”  

The  second  form  of  trade  mark  infringement  required  Specsavers  to  show  both  a  link  between  the  registered  mark  and  the  offending  signs  and  that  an  unfair  advantage  was  being  gained.      

For  the  First  Strapline,  the  CoA  agreed  with  the  High  Court  that  there  was  infringement  –  there  was  a  link  to  Specsavers  and  the  consumer  is  told  there  is  a  better  deal  at  Asda  (thus  gaining  unfair  advantage).      Asda  was  therefore  found  to  be  clearly  referencing  consumers’  knowledge  of  Specsavers  and  its  reputation  for  value.      

Unlike  the  High  Court,  the  CoA  also  found  that  the  Second  Strapline  and  the  Asda  Logo  infringed  under  this  ground.    Although  “spec  savings”  is  not  as  close  to  Specsavers  as  “spec  saver”  the  court  found  there  was  a  connection  between  the  second  strapline  and  Specsavers  (helped  by  the  fact  that  the  evidence  showed  Asda  intended  to  make  this  connection).  

The  CoA  also  found  that  use  of  the  Asda  Logo  created  a  link  with  the  Specsavers  Logo  trade  marks  and  interestingly  took  into  account  the  use  of  the  Logo,  not  on  its  own,  but  as  part  of  the  advertising  campaign  (specifically  the  Logo  alongside  the  straplines).    Again  Asda’s  intention  to  target  Specsavers    appeared  to  be  a  factor  and  this  “cumulative”  effect  led  to  a  finding  of  infringement,  even  though  the  words  SPECSAVERS    and  ASDA  were  prominent  in  the  respective  trade  marks.  

4.   Non-­‐Use  

Asda  sought  revocation  of  the  Specsavers  trade  mark  being  the  “Wordless  Logo”  that  was  registered,  see  below,  on  the  grounds  of  non-­‐use.    The  point  being  that  the  trade  mark  had  always  been  used  with  the  words  SPECSAVERS  across  it,  never  actually  used  as  shown  below.  

This  issue  has  not  been  before  the  courts  very  often  and  the  CoA  found  the  guidance  from  the  ECJ  to  conflict;  in  the  HAVE  A  BREAK  case  it  was  found  that  use  of  part  of  a  mark  was  sufficient  to  show  acquired  distinctiveness  in  a  trade  mark  whereas  in  the  BRIDGE  case  use  of  a  similar  mark  THE  BRIDGE  was  not  considered  to  suffice  to  validate  a  registration  for  BRIDGE.    Accordingly  the  CoA  referred  questions  to  the  ECJ  in  order  to  clarify  the  position.      

 

The  answers  to  these  questions  should  be  watched  carefully  by  major  brand  owners  who  operate  in  Europe.    Many  have  spent  significant  time  and  budget  registering  “non-­‐traditional”  trade  marks  such  as  colour  (Cadbury  purple),  shapes  (Toblerone  bar),  packaging  (Heinz  tin),  and  logos  (as  here)  in  an  effort  to  protect  imitation.    In  many  cases  these  trade  marks  are  not  used  on  their  own  but  in  close  combination  with  the  primary  word  brand.    If  the  questions  and  subsequent  judgment  go  the  wrong  way  then  those  registrations  may  become  vulnerable  and  going  after  imitators  will  become  more  difficult.