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Amendments to Trademark Laws

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Jun 14, 2013 (Newsletter Issue 9/13)
Hungary
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Amendments to Trademark Act


On April 1, 2013, the most recent amendments to Act XI of 1997 on the Protection of Trade Marks and Geographical Indications (Trade Mark Act) became effective. The amendments implement international agreements and EU rules into Hungarian law and introduce other significant changes to the Hungarian trade mark regulation. Set forth below is the summary of some of the most important modifications of the Trade Mark Act.

1. New limitation on enforcement of trade mark infringement claims
In court actions filed for trade mark infringement, no damages may be demanded and no other legal sanctions may be applied with respect to the period when the grounds for termination of trade mark protection materialize with respect to the trade mark holder.

2. Date of the revocation of trade mark protection
In certain cases of the revocation of the trade mark protection (e.g.: non-use of the trade mark; deceptive trade mark, etc.), the protection may also be revoked with retroactive effect to any earlier date, provided that the grounds for revocation existed at the earlier date.

3. Registration of state emblems became less restrictive
As a general rule, the registration of state emblems are prohibited. As an exception, however, if authorized by the appropriate agency, trade marks consisting entirely of state emblems or signs indicating control or warranty may be registered. Another change is that the registration of signs indicating control, warranty or a hallmark is prohibited only with respect to certain goods.

4. Use of names of legal entities and organizations as a limitation to trade mark protection
As a result of the amendments, legal entities and other organizations could challenge trade mark holders regarding their lawfully used names in connection with their trade practices. Before the amendments this option was available only for natural persons.

5. Submissions and exhibits
In trade mark proceedings the party initiating the proceedings must file one copy of every submission for each opposing party as well as one copy for the office. In addition, one copy of each exhibit must be attached to every submission filed.

6. Protection of personal data
The Trade Mark Act now explicitly provides that the personal data submitted in trade mark proceedings may only be disclosed if the person concerned consents or if they are public under the general rules of public administration.

7. Withdrawal or modification of decisions
In the absence of opposing parties, the Hungarian Intellectual Property Office (HIPO) may withdraw or modify certain decisions ex officio (e.g., decisions staying a proceedings, decisions setting fines or procedural fees), if with respect to such decisions, a review petition has been filed and HIPO consents..

8. The conditions for expedited proceedings have been amended
Within one month from the filing of an application for expedited proceedings, not only the fee for the application for expedited proceedings must be paid but also the filing fee for the trade mark application.

9. Ancillary rules regarding collective marks
a. In the case of collective marks, it is a ground for exclusion if the sign is misleading, especially if it masks the collective nature of the mark.
b. In addition, the amendments clarify that the owner of a collective mark is the association but the mark may be also used by the individual members of the association.
c. In the future, the modification of policies regarding the use of collective marks must be approved by HIPO. The modifications become effective at the time of registration.

10. Use of certification marks
It was clarified that the holders of certification marks may not use such marks for the purpose of certification, but they may authorize such use.

11. Additional limitations of the registration of signs containing geographical indications
Signs consisting of or containing geographical indications may not be registered if they could not be registered as trade marks under EU law.

12. Electronic filing
As of January 1, 2014, the office accepts electronic international applications and requests in international trade mark filings.

Source: KNP LAW Nagy Koppany Varga and Partners, Hungary