Infringement of a trademark - trademark protection
The essential function of trademarks is to distinguish our goods and services from the goods and services of others.
In addition to displaying our trademark on the product in a pronounced manner, we must also make sure that no one else could copy our product or service by displaying an indication on the product or in connection with the service that is very similar to, or possibly identical to, our trademark. Besides obtaining trademark protection we must also pay special attention to defend the trademark and to protect the brand.
- The primary means of combating counterfeiting and taking action against counterfeiters is a lawsuit initiated due to the infringement of a trademark and for establishing its legal consequences. Based on the trademark protection, the trademark proprietor has the exclusive right to use the trademark and may take legal action for its protection. Such a lawsuit may currently be initiated exclusively before the Budapest Metropolitan Court.
- In a trademark infringement lawsuit, the trademark proprietor may demand the court to establish that trademark infringement has occurred; further he may demand the court to oblige the infringer to cease the trademark infringement and to prohibit the infringer from further infringement. He may also demand reparation i.e. ask the court to oblige the infringer to publish the fact of trademark infringement, typically in the form of a press release.
- Beyond all these, the trademark proprietor may demand seizure of the counterfeit goods or demand that they are definitively withdrawn from commercial circulation, or destroyed. Upon request of the trademark proprietor, the court may oblige the the infringer to fulfill disclosure of data, which enables the trademark proprietor to map additional market players involved in the manufacturing and/or distribution of the counterfeit product.
A well-established brand or trademark has a substantial value. Therefore, in the case of counterfeiting, after the court has established the trademark infringement, the trademark proprietor may also claim compensation for damages, and the return of the actual gains achieved by the infringer through the counterfeiting.
Trademark infringement can also occur in very special cases, e.g. when someone uses another person’s trademark as a keyword in SEO search engine optimization without permission.
- In case of infringement of a European Union trademark, the infringement lawsuit must be initiated before the designated court of the Member State, which is also the Metropolitan Court in Hungary.
Finally, we note that counterfeiting can also have criminal consequences (violation of industrial property rights, Section 384 of the Criminal Code), therefore it is advisable to proceed with increased caution in such cases.
Our law firm provides full advice on the above issues, which includes strategic planning related to brand protection, taking actions against counterfeiting, and full representation in trademark infringement lawsuits.