タグ: Article 4(4)

Can a ‘Letter of Consent’ guarantee successful trademark registration in Japan?

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The revised Japan Trademark Law will come into effect on April 1, 2024, introducing the “Letter of Consent” as a means to overcome conflicts with earlier trademark registrations.

However, the Japan Patent Office (JPO) recently announced that evidence must be provided in addition to a consent letter obtained from the earlier registrant when applying Article 4(4) of the Japan Trademark Law. This evidence must convince the JPO examiner that there is no likelihood of confusion between earlier and junior marks, not only at present but also in the future.

Article 4(4) of the Japan Trademark Law, which is newly introduced in April, states:

Trademark applications will not be rejected under Article 4(1)(xi) as long as the applicant obtains consent from the owner of the cited mark and it is unlikely to cause confusion with the cited owner or its exclusive or non-exclusive licensee when used on goods or services designated under the application.

Trademark examination guidelines for Article 4(4) provides:

  1. The requirement of being ‘unlikely to cause confusion’ must be satisfied not only at the time of the JPO examiner’s decision, but also in the future.
  2. To satisfy the requirement, the following factors will be assessed:
    • Similarity between marks
    • Recognition of mark
    • Uniqueness of mark
    • Significance of mark (House mark or product brand)
    • Possibility of business expansion
    • Relatedness of goods and service
    • Consumers
    • Trade practices involving actual use of mark
  3. Where both marks are identical and used on same goods and service, the examiner will find “likely to cause confusion” in principle.
  4. Applicant will be required to provide evidence to demonstrate unlikelihood of confusion based on actual use of both marks. For instance,
    • Different color, font or combination between literal element and figurative element of respective mark
    • Different position to place the mark or to accompany with other distinctive mark
    • Difference in speific purpose or price of respective goods
    • Different sales channel
    • Different seasons to use the mark
    • Different territory to use the mark
    • Mutual covenants to take necessary actions if confusion is likely to occur between the marks
  5. An agreement between the parties not to change the present use or configuration of both marks in the future will be required to strengthen the unlikelihood of confusion in the future.

It is important to note that “letter of consent” is not available to trademark applications filed with the JPO before April 1, 2024, even if they are pending examination.

Similarly, international registrations that were registered at the WIPO or subsequently designated to Japan before April 1, 2024, can’t make use of the consent.

Japan: Trademark Law Revision Act promulgated on June 14, 2023

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The Japan Trademark Law Revision Act of 2023 (Act No. 51) passed Congress on June 7 and was promulgated on June 14. Hot topics of the revision are:

1. An individual can register his/her name as a trademark to the extent that it has acquired a substantial degree of recognition among relevant consumers of the designated goods or services

Current law provides that the name of a person is unregistrable if there is another person of the same name unless obtaining his/her consent (Article 4(1)(viii)).

Current – Article 4(1)(viii)

Trademark shall not be registered if the mark contains the portrait of another person, or the name, famous pseudonym, professional name, or pen name of another person, or famous abbreviation thereof (except those the registration of which has been approved by the person concerned)

By virtue of the revision, in the event that the name of a person has been widely recognized as a source indicator of his/her business, the individual can register his/her name without the consent of another person of the same name.

Revision – Article 4(1)(viii)

Trademark shall not be registered if the mark contains the portrait of another person, or the full name of another person (limited to that has been widely recognized as a result of actual use on goods or services of the person’s business), the name, famous pseudonym, professional name or pen name of another person, or famous abbreviation thereof (except those the registration of which has been approved by the person concerned), or the name of another person that would not meet with requirements specified by government ordinance.

It should note above revision does not apply to the name of a company (legal entity). A company can’t register its name without the consent of another company of the same name if exists.

 2. A mark can be registered even if it is subject to Article 4(1)(xi) which prohibits registration of any mark identical or similar to earlier trademark registration, on the condition that the earlier trademark owner gives consent and there is no likelihood of confusion with the earlier mark as a matter of fact.

For long years, the JPO has not considered, in the course of trademark examination, consent from earlier trademark owners as a pass to open the gate for registration.

Due to a rigid examination practice, the applicant and earlier trademark owner, regardless of mutual agreement to give consent to trademark registration in Japan and other jurisdictions, were all the way obliged to temporally transfer their trademark right to either party and then take action to assign it back after the JPO granted registration of the applied mark.

By virtue of the revision, the applicant can overcome the refusal based on a conflict with earlier trademark registration in Japan by filing a letter of consent from the earlier trademark owner and the JPO examiner believes the co-existence of both marks would not cause confusion.

New – Article 4(4)

Trademark shall not be rejected under Article 4(1)(xi) provided that the applicant obtains consent from the owner of the cited mark under the article and it is unlikely to cause confusion with the cited owner and its exclusive or non-exclusive licensee when used on goods or services designated under the application.

It should note the JPO still has the discretion to reject or cancel trademark registration even after the filing of a letter of consent where they find a likelihood of confusion or actual confusion (Article 52-2).

When does the revised act come into force?

The revised act is set to become effective from April 1, 2024.