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The court does not implement the EU trademark infringement dispute award of punitive damages
date: 2019-05-30

Editor's note: This article discusses Unión de Cosecheros de Labastida S. L. with Viñedos Puertade la Bastida S. L. Enforcement of Court Decisions on trademark disputes in European Union. The court ordered the defendant to stop using the red wine products "PUERTA DE LA BASTIDA" trademark, And take back all merchandise using the logo, Promotional materials and other materials. Read on for more details!

[background] This article discusses Unión de Cosecheros de Labastida S. L. with Viñedos Puertade la Bastida S. L. Enforcement of Court Decisions on trademark disputes in European Union. The court ordered the defendant to stop using the red wine products "PUERTA DE LA BASTIDA" trademark, And take back all merchandise using the logo, Promotional materials and other materials. In the execution procedure of the judgment in this case, The court ordered the person to stop using it within one month "PUERTA DE LA BASTIDA" Act of trademark, and "cancellation" Disputed domain name. after, The court cited the failure of the person subject to execution to execute the judgment within the prescribed time limit, open 37, 200 Mandatory compensation fines in euros (600 euro/day) . The Court of appeal upheld the defendant's application for appeal, Revoke the compulsory compensation award of first instance.

[conclusion] The Court of Appeal first discussed the general principle of compulsory compensation, That is, the daily compensation multiplied by the date on which the judgment is required to be executed to the number of days in which the person subjected to execution finally begins to execute the judgment. For that matter, Judgment point: "There are two conditions for compulsory compensation to be established: (a) In the judgment of trademark infringement dispute, it is clearly required to stop the infringement; and (b) The abuses have not stopped. Only the above two conditions are met, And after the execution of the sentence begins (Because of the foregoing provisions, Compulsory compensation can only be established at the execution stage of the judgment) , Only in accordance with the following principles can the court decide the specific amount of compulsory compensation to be paid by the person subjected to execution (Because the purpose of mandatory damages is to encourage the person sentenced to stop the infringement) : (a) The minimum compensation shall not be less than 600 euro/day; (b) The starting date of the calculation of the days of compulsory compensation shall be the date of execution required by the judgment; (c) The expiration date of the days for compulsory compensation shall be the date on which the infringement effectively ceases" . In this case, The claim for compulsory damages is based on the defendant's failure to cancel the domain name associated with the trademark within the time period required by the judgment. but, The court held that the following facts prevented the establishment of a compulsory measure of compensation: (1) The infringement judgment does not explicitly contain specific facts about the domain name; (2) Before requesting deregistration of the domain name, The defendant has transferred the content of the disputed website to another website; (3) The defendant expressly stated that the disputed domain name could not be cancelled for administrative reasons other than its own; (4) Execution stage of judgment, Defendant and Plaintiff have reached an agreement on the transfer of the disputed domain name. Based on the above analysis, Court decision: "The purpose of enforcing compulsory compensation is to, Encourage prior active conscious neglect to stop infringement (Or be able to infer the claim directly from the legal process) The judgment requires the person subjected to execution to execute the judgment. Therefore, (The prerequisite for the award of compulsory compensation is the person subjected to execution) Willfully failing to execute a judgment on the cessation of trademark infringement. For the above reasons, Whereas no judgment in this case required the cancellation of the disputed domain name (The plaintiffs were aware of the domain name before they sued) , Instead, a requirement to cancel a domain name was added during the enforcement phase of the judgment, However, the defendant was unable to comply with the request due to service agencies beyond the defendant's control, Therefore, it does not meet the conditions for the establishment of compulsory compensation. And in spite of that, The executed party still dutifully takes action (Always apply to the service provider for deregistering the domain name) , Before an application for compulsory compensation is filed, Has removed the content of the disputed site in an effort to avoid further damage to the trademark owner" .

[comment] In reality, there are few precedents requiring the review of compulsory compensation measures. Compulsory compensation is an important means to prevent the passive execution of trademark infringement. The amount of compulsory compensation is calculated on the basis of the number of days before the court judgment is effectively enforced, It helps to improve the validity of court decisions and legal certainty. however, The law has little to do with the obligation to pay such claims and the amount payable each day. The ruling clears up several previous doubts, A clear judgment of the attitude of the person subjected to execution is to order compulsory compensation "Discretionary factor" One of.

compile: Liu Dan, Esabarry Legal Counsel source: Esabaril (ELZABURU)