タグ: Article 46

Trademark Opposition or Invalidation, Which Is Useful in Japan?

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Opposition

A trademark opposition is a proceeding in which a third party can oppose a newly registered trademark under Article 43bis of the Japan Trademark Law. For example, once a trademark is newly registered by JPO, this fact is published in the Official Gazette of Trade Marks immediately after it is actually registered. This kicks off a two (2) month period known as the ‘opposition period’ during which other parties are then given an opportunity to ‘oppose’ the registration of the trademark.

Invalidation

Trademark invalidation is an inter-partes proceeding in which a party has a legal interest in the result that can null a trademark registration under Article 46 of the Japan Trademark Law. If the registration is less than five years old, the party challenging the trademark rights can rely on any ground that could have prevented registration initially.

Comparison

Conflict with earlier registration (similarity of mark and goods/service), a likelihood of confusion with famous mark, and descriptiveness are the most common grounds asserted both in opposition and invalidation action.

 Trademark OppositionTrademark Invalidation
Statute of limitations2 months from the publication date5 years from the registration date
Official feeJPY11,000 for 1 class
JPY19,000 for 2 classes		JPY55,000 for 1 class
JPY95,000 for 2 classes
StandingLegal interest is not requiredLegal interest is required
CounterargumentNo obligation to counterargue unless the JPO notifies a cancellation ground to a registrant.Mandatory for a registrant to counterargue, otherwise it may adversely affect.
Pendency period7.9 months11.5 months
Appeal to decisionOnly the registrant can file an appeal against an unfavorable decisionEither party can file an appeal against the JPO decision

Which action to take?

From a cost-saving point of view, opposition undoubtedly looks more attractive than invalidation, however, when you look at the success rate of opposition (see below table), it may change your mind. There has been a big gap in the success rate between opposition and invalidation for years.

YearThe success rate of the OppositionThe success rate of Invalidation
201513%32%
201616%42%
201711%33%
201811%34%
201911%56%
202011%35%

Therefore, in terms of probability theory, invalidation action is by far preferable to opposition for the purpose of removing trademark registration in Japan.

Adidas triumphs over 3-stripe trademark battle

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After six years of prolonged dispute, Adidas AG could achieve a victory over trademark battle involving famous 3-stripe design. In a recent trademark invalidation appeal, case no. 2016-890047, the Trial Board of Japan Patent Office (JPO) decided in favor of Adidas AG to retroactively null trademark registration no. 5430912 for three lines device mark (see below) due to a likelihood of confusion with Adidas’ famous 3-stripe design.

 

Disputed mark

Disputed mark was filed on March 2, 2011 by a Japanese business entity, designating shoes in class 25 and registered on August 5, 2011 (Registration no. 5430912).

To oppose the registration, on October 18, 2011, Adidas AG filed an opposition against disputed mark based on Article 43bis of the Trademark. But the Opposition Board of JPO overruled the opposition and decided to admit registration of disputed mark on June 27, 2012. Four years later, Adidas AG filed an invalidation appeal with an attempt to retroactively null disputed mark based on Article 4(1)(xv), 46(1)(i) of the Trademark Law.

The Japan Trademark Law provides where a trademark has been registered for five years or more, an invalidation appeal based on Article 4(1)(xv) shall be dismissed unless the trademark was aimed for registration with a fraudulent purpose.

It is imagined that the provision urged Adidas to take an invalidation action eventually since the appeal date is just one week before a lapse of five years from registration.

 

Invalidation trial

Adidas AG repeatedly argued a likelihood of confusion between Adidas’ famous 3-stripe design and disputed mark because of a high degree of popularity and reputation of 3-stripe design as a source indicator of Adidas sportswear and sports shoes, visual resemblance between the marks.

Board decision

The Board found that:

  1. Adidas’ 3-stripe design has acquired a substantial degree of reputation well before the filing date of disputed mark as a result of continuous marketing activities in Japan since 1971.
  2. Occasionally, Adidas promotes shoes depicting various types of 3-stripe design with a slight modification to length, width, angle, outline or color of the stripe.
  3. Disputed mark gives rise to the same visual impression in the mind of consumers with 3-stripe design by taking account of similar graphical representation consisting of three lines in parallel leaning to the left. Difference in detail is negligible since it can be perceived as a variation of Adidas shoes given actual business circumstances.

Based on the above findings, the Board concluded that relevant consumers and traders are likely to confuse shoes using disputed mark with Adidas’ famous 3-stripe design or misconceive a source from any entity systematically or economically connected with Adidas AG. Thus, disputed mark shall be invalidated in violation of Article 4(1)(xv) of the Trademark Law.