Study sparks EU trade mark hand out
THE region’s firms are in line to receive thousands of pounds as part of a €400m payback from the European Union.
According to Clarion Solicitors the EU is set hand-out a “substantial surplus” from issuing fee-based Community Trade Marks (CTMs) over the last 15 years.
The decision comes after a study requested by the European Commission to look at the operation of Europe’s trade mark system.
The study showed that since the CTM system was establised in 1994 more than 825,000 applications have been received generating a surplus revenue for the Office of Harmonisation in the Internal Market (OHIM).
Leigh Martin, who leads Clarion’s specialist intellectual property (IP) division, said: “The CTM has been phenomenally successful. When it was set up 15 years ago the intention was that the system would be fee-based and self-funding but not that it would make a profit.
“As a result of the success of the scheme, revenues have been significantly higher than initially expected, raising the question of what should be done with the surplus.”
Even after reducing fees in 2009 and giving money to national IP offices through various projects there is still a €300m surplus and the OHIM has now proposed making refunds to owners of CTMs, which were registered prior to the recent fee changes.
The OHIM has calculated that if its proposals are adopted owners of pre-2005 CTMs will each receive on average around £1,350 at today’s exchange rates and that those with post-2005 CTMs will be entitled to around £700 each.
Mr Martin continued: “If the proposals are adopted then the OHIM is suggesting a publicity campaign to alert trade mark owners of their rights to refunds.
“While the precise mechanism for the refunds would need to be worked out, we are actively monitoring the position for our clients to ensure that, should they have an entitlement to a refund, they receive what becomes due to them.”
CTMs cover all 27 EU member states and with their cost reduced last year there is an even greater argument now for businesses to protect themselves throughout Europe by investing in them.
