Brexit update - transition period until 31 December 2020

After a rather ominous period of silence, last January 24th the European Union and the UK placed the necessary signatures in order for England to formally leave the EU on January 31th. It is important to note that a transition period has been agreed upon which, which will last until the end of 2020. Until that date all existing EU rights will continue to apply in the UK. So for the moment nothing will change for holders of EU trademarks and designs. Also English representatives will remain authorized to act before the EUIPO and EU courts, at least until that date.

If there are no further delays, the concerned rights will automatically be split into a Union right for the EU and a similar right in the United Kingdom. The (split) national English trademark will not be re-examined and no additional taxes will be charged. If rights’ holders don’t want to make use of this, an arrangement to opt-out will be available for this. So no action is required from the side of trademark holders to maintain rights that are already registered in the EU in England.

Also EURID (the registrar that handles the .EU domain names) has announced that it will keep to this transition period. So companies and individuals based in England can continue to use the .eu domain name until December 31.

Things might be different for applications that have not registered yet on the end date. If there are no further delays on December 31th, a extended nine-month period will follow, in which the holders is allowed to convert EU trademark or design applications into a concurrent application in England. An additional fee will probably apply in order to secure these rights.

Many British colleagues have expressed doubts whether the agreed transition period of 11 months is sufficient time to work out everything. Chances of a further delay are therefore not hypothetical. As soon as there is more news about this, we will report back to you.

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IP quiz Trademarks

Puma is one of the bigger sports and lifestyle brands in the world. The core-business is the design, development and sale of (sports) shoes, (sports) clothing and accessories. In 1960, Puma registered an international trademark for a device designed in 1958: the formstrip. Since then, Puma has registered approximately 90 formstrip trademarks with validity in the Benelux or the European Union. Puma claims that this is a serial mark. Monshoe is a wholesaler of women's shoes and related products. The company designs and develops Monshoe shoes which it largely markets itself. Monshoe sells its women's shoes under the brands Shoecolate and Pearlz. The shoe Shoecolate is offered in various colour combinations. Puma claims that Monshoe infringes its well-known formstrip trademark. Monshoe contradicts this and states that the average consumer will not perceive the device of Monshoe on the sneakers as a trademark. And if the public will recognize a trademark in the decoration, it will not make the connection to Puma. According to Monshoe, the formstrip logo is not a well-known trademark within the meaning of the BVIE and the UMVo. There is no likelihood of confusion because the sign does not or hardly evoke any association with Puma among the public. In light of the above, who is right? Does this constitute decorative use or linking to a well-known trademark?