The owner of a trademark used to identify their goods or services has the exclusive right to use it. Any use by another party of the trademark, or a similar mark, in a way that creates public confusion, effectively constitutes trademark theft. It should be emphasized that infringement is not limited to registered trademarks only. Infringement of unregistered trademarks is also prohibited by law and gives the mark’s owner the right to sue the infringer.
Injunctions and Damages in Cases of Trademark Theft
Whether dealing with registered or unregistered trademark infringement, trademark owners have two main remedies available:
The purpose of an injunction is to stop the trademark infringement and prevent future violations. Along with it, a search and seizure order can be filed to:
– Prevent the distribution of counterfeit products or services in the market
– Allow the seized goods to be used as evidence in court
The purpose of damages is to compensate the trademark owner for losses caused by the infringement. In certain cases, the court may award infringement damages up to 100,000 NIS, even without proof of damage by the trademark owner.
Protection of Unregistered Trademarks and Registration Benefits
The law protects trademark owners even in cases of unregistered trademark infringement. However, the significant difference in unregistered trademark infringement, compared to registered trademark infringement, is that when the mark is not registered, owners must prove to the court that the public indeed associates their service or product with the trademark. Since proving goodwill can be a complex, lengthy, and very expensive process, trademark registration ensures a very significant advantage, as it makes it much easier for the owner to:
– Protect themselves
– Stop infringing use of the mark
– Receive compensation for infringement
– Prevent future infringements
Trademark Theft in Imported Goods
One of the main reasons for seizing imported goods and delaying their customs release is suspicion that the goods are counterfeit and infringe an existing trademark. After the decision to detain the goods is made, whether initiated by customs officials or at the trademark owner’s request, the trademark owner must examine whether infringement has indeed occurred.
Two Types of Procedures for Handling Detained Goods
Short Procedure
– Goods are detained at customs for 3-6 working days
– Trademark owner must check for infringement based on photos or samples
– If infringement is found, owner must submit reasoned opinion to customs
– Importer may review the opinion
– Trademark owner must commit to:
– Join customs as additional defendant if importer sues
– Compensate customs/importer for unjustified detention
– Opinion must be persuasive while avoiding giving counterfeiters excess information
– Consultation with IP attorney recommended
Long Procedure
– Goods detained for 3-6 days
– Owner must notify customs of intent to sue importer within 10 days
– Bank guarantee required for potential customs/importer expenses
– After guarantee deposit, customs informs of importer’s identity
– Typically leads to owner-importer negotiations for settlement
– Settlement may include:
– Goods destruction
– Commitment not to import infringing products
– Must be approved by customs
– If no settlement reached, owner must file court claim within set time
– Goods released to importer if no claim filed
Summary
Proving trademark theft or responding to infringement claims can be complex and complicated, making consultation with an IP attorney specializing in the field crucial. As a leading firm with over 30 years of IP experience, we’ve represented thousands of clients in trademark registration and infringement cases for both registered and unregistered marks. This rich experience allows us to provide our clients with comprehensive protection and maximize their commercial rights.
If your trademark has been infringed, or if your imported goods are detained on suspicion of trademark theft, our office team can advise you on how to proceed and ensure your rights are protected in various proceedings, particularly in legal representation for infringement claims.
For any questions regarding trademark infringement, please contact us
*The aforementioned in this article and on the website in general should not be considered as legal advice and the things written in it should not be considered as a substitute for individual legal advice, but a personal opinion and/or a general explanation only. Of course, you should not rely on and/or act in accordance with the above without individual legal advice from an attorney
For any questions on this topic, contact us
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