Interflora v Marks and Spencer - Final Judgment 5 November 2014

8/16/2019 Interflora v Marks and Spencer - Final Judgment 5 November 2014

1/69

Neutral Citation Number: [2014] EWCA Civ 1403

Case No: A3/2013/1736/1737/1737(!

IN THE COURT OF APPEAL (CIVIL DIVISION)

ON APPEAL FROM THE HIGH COURT OF JUSTICE

CHANCERY DIVISION

INTELLECTUAL PROPERTY

COMMUNITY TRADE MARK COURT

The Hon Mr Jus!"e Arno#$

%&'* E+HC &, (Ch)

"o#al Courts o$ %usti&e'tran) *onon) WC2A 2**

+ate: 0,/11/2014

-e.ore/

LORD JUSTICE PATTEN

LORD JUSTICE KITCHIN

an

SIR COLIN RIMER

- - - - - - - - - - - - - - - - - - - - -

-e0een/

() Iner.#or1 In"

(1 "o231n4 !n"or3or1e$ un$er he #10s o.

M!"h!51n6 Un!e$ S1es)

(&) Iner.#or1 -r!!sh Un! C#1!21ns7

Res3on$ens

8 1n$ 8

M1r9s 1n$ S3en"er 3#" De.en$1n7

A33e##1n

- - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

.r eo$$re# obbs C an .iss Emma imsort C

(instru&te b# ristos **5! $or te Aellant

.r .i&ael 'ilverlea$ C an .r 'imon .al#ni&

(instru&te b# 5insent .ason **5! $or te "esonents

earin8 ates: 9-10 %ul# 2014- - - - - - - - - - - - - - - - - - - - -

A33ro:e$ Ju$52en


2/69

Ju$52en A33ro:e$ ;4 he "our .or h1n$!n5 $o0n< .' v ;nter$lora

Lor$ Jus!"e K!"h!n/

1< =is is te >u8ment o$ te &ourt uon an aeal b# te e$enant (?. '@! a8ainst

te >u8ments o$ Arnol % 8iven on 21 .a#) 23 .a# an 12 %une 2013 an is

&onseuential orers mae on 23 .a# an 12 %une 2013 ereb# e entere

>u8ment $or te &laimants (&olle&tivel# ?;nter$lora@! on teir &laim $or in$rin8emento$ teir national an Communit# re8istere trae marBs $or te or ?inter$lora@< .

' also aeals a8ainst an earlier >u8ment o$ Arnol % 8iven on 1, Aril 2013 an

is &onseuential orer mae on tat a# ismissin8 te ob>e&tions mae b# . ' to

te amission o$ te evien&e &ontaine in various a&aemi& arti&les re$erre to in a

Civil Evien&e A&t noti&e serve b# ;nter$lora on 2, .ar& 2013<

2< =e a&tivities o$ . ' i& ave 8iven rise to tese ro&eein8s &on&ern te

isla# on te internet o$ . ' avertisements in resonse to te entr# into te

oo8le sear& en8ine b# internet users o$ sear& terms &onsistin8 o$ or &omrisin8 te

or ?inter$lora@ or minor variants o$ it<

Le51# .r12e0or9

3< ;nter$lora alle8e tat . 's a&tivities amounte to an in$rin8ement o$ teir trae

marBs uner Arti&le ,(1!(a! an ,(2! o$ Dirst Coun&il +ire&tive 9/104 EEC o$ 21

+e&ember 199 to aroFimate te las o$ .ember 'tates relatin8 to trae marBs an

Arti&le (1!(a! an (1!(&! o$ Coun&il "e8ulation 40/4 o$ 20 +e&ember 13 on te

Communit# trae marB< +ire&tive 9/104 an "e8ulation 40/4 ave sin&e been

reeale b#) rese&tivel#) +ire&tive 2009//EC o$ 22 G&tober 2009 i& &ame into

$or&e on 29 November 2009) an "e8ulation 207/200 o$ 26 Debruar# 200 i&

&ame into $or&e on 13 Aril 200< oever) te alle8e in$rin8in8 a&tivities be8an

en +ire&tive 9/104 (?te +ire&tive@! an "e8ulation 40/4 (?te "e8ulation@!ere in $or&e an sin&e te relevant rovisions are in all material rese&ts te same)

Arnol % aroa&e te alle8ations on te basis o$ te ori8inal rovisions) an e

sall o te same<

4< =e tent re&ital in te reamble to te +ire&tive reas:

?Wereas te rote&tion a$$ore b# te re8istere trae marB)

te $un&tion o$ i& is in arti&ular to 8uarantee te trae

marB as an ini&ation o$ ori8in) is absolute in te &ase o$

ientit# beteen te marB an te si8n an 8oos or servi&esH

ereas te rote&tion alies also in &ase o$ similarit# beteen te marB an te si8n an te 8oos or servi&esH

ereas it is inisensable to 8ive an interretation o$ te

&on&et o$ similarit# in relation to te liBelioo o$ &on$usionH

I te liBelioo o$ &on$usion I &onstitutes te se&i$i&

&onition $or su& rote&tion


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entitle to revent all tir arties not avin8 is &onsent $rom

usin8 in te &ourse o$ trae:

(a! an# si8n i& is ienti&al it te trae marB in

relation to 8oos or servi&es i& are ienti&al it tose

$or i& te trae marB is re8istereH

(b! an# si8n ere) be&ause o$ its ientit# it) or

similarit# to) te trae marB an te ientit# or similarit# o$

te 8oos or servi&es &overe b# te trae marB an te si8n)

tere eFists a liBelioo o$ &on$usion on te art o$ te

ubli&) i& in&lues te liBelioo o$ asso&iation beteen

te si8n an te trae marB<

2< An# .ember 'tate ma# also rovie tat te

rorietor sall be entitle to revent all tir arties not

avin8 is &onsent $rom usin8 in te &ourse o$ trae an# si8ni& is ienti&al it) or similar to) te trae marB in relation

to 8oos or servi&es i& are not similar to tose $or i&

te trae marB is re8istere) ere te latter as a reutation in

te .ember 'tate an ere use o$ tat si8n itout ue &ause

taBes un$air avanta8e o$) or is etrimental to) te istin&tive

&ara&ter or te reute o$ te trae marB<

3< =e $olloin8) inter alia) ma# be roibite uner

ara8ras 1 an 2:

(a! a$$iFin8 te si8n to te 8oos or to te a&Ba8in8tereo$H

(b! o$$erin8 te 8oos) or uttin8 tem on te marBet or

sto&Bin8 tem $or tese uroses uner tat si8n) or o$$erin8

or sul#in8 servi&es tereunerH

(&! imortin8 or eFortin8 te 8oos uner te si8nH

(! usin8 te si8n on business aers an in avertisin8<

I@

7< =e orin8 o$ Arti&le (1!(a! an (b! o$ te "e8ulation &orresons to tat o$ Arti&le

,(1! o$ te +ire&tive< =e orin8 o$ ara8ra 2 o$ Arti&le &orresons to tat o$

ara8ra 3 o$ Arti&le ,< Arti&le (1!(&! o$ te "e8ulation sa#s:

?A Communit# trae marB sall &on$er on te rorietor

eF&lusive ri8ts terein< =e rorietor sall be entitle to

revent all tir arties not avin8 is &onsent $rom usin8 in

te &ourse o$ trae:

I

(&! an# si8n i& is ienti&al it or similar to te

Communit# trae marB in relation to 8oos or servi&es i&


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are not similar to tose $or i& te Communit# trae marB is

re8istere) ere te latter as a reutation in te Communit#

an ere use o$ tat si8n itout ue &ause taBes un$air

avanta8e o$) or is etrimental to) te istin&tive &ara&ter or

te reute o$ te Communit# trae marB


5/69


14< . ' avertises its $loers on te internet an one o$ te a#s it oes tis is b# use

o$ te oo8le AWors servi&e< ;n broa outline) tis servi&e orBs in te $olloin8

a#< A user o$ te oo8le sear& en8ine o as &arrie out a sear& is resente

it a sear& en8ine results a8e or 'E"5 i& usuall# &ontains tree elements<

=e $irst is te sear& boF i& &ontains te sear& term) a or or rase t#e in

b# te user< =e se&on &ontains linBs to ebsites i& aear to te oo8le sear&en8ine to &orreson to te sear& term< =ese are Bnon as te ?natural@ or

?or8ani&@ results o$ te sear& an are usuall# isla#e in orer o$ relevan&e< =e

tir &omrises linBs) re$erre to as ?sonsore linBs@) to ebsites i& are

isla#e be&ause te oerators o$ tose ebsites ave ai $or tem to aear< =e#

are) in e$$e&t) avertisements an are usuall# isla#e in one or more arts o$ te

'E"5) namel# in a sae boF in te uer art o$ te a8e (above te natural sear&

results!) in a anel on te ri8t an sie o$ te a8e (to te ri8t o$ te natural sear&

results!) or in a anel at te bottom o$ te a8e (uner te natural sear& results!< Gver

te #ears te labellin8 o$ tese sonsore linBs as varie) but te# ave 8enerall#

been eae it te ors ?'onsore *inBs@ or ?As@ or variations o$ tem<

1,< A sonsore linB aears en a user enters one or more arti&ular ors in to te

sear& en8ine trou8 te sear& boF< =ese ors) Bnon as ?Be#ors@) are

se&ure b# te avertiser in return $or a $ee< =is is &alle ?ur&asin8@ or ?biin8

on@ te Be#or< =e sonsore linB &ontains tree elements< =e $irst is an

unerline eain8 i& $un&tions as a #er-linB to te avertisers ebsite< =is

ma# or ma# not &ontain te Be#or< =e se&on is a sort &ommer&ial messa8e or

avertisement i&) on&e a8ain) ma# or ma# not &ontain te Be#or< =e tir is

te Jni$orm "esour&e *o&ator or J"* o$ te avertisers ebsite<

16< =e $ee ai b# te avertiser is &al&ulate on te basis o$ te number o$ times users

&li&B on te #er-linB to te avertisers ebsite (a ro&ess Bnon as ?&li&B trou8@! sub>e&t to a maFimum ail# limit i& te avertiser as se&i$ie< A

number o$ i$$erent avertisers ma# bi $or te same Be#ors) an) i$ te# o) te

orer in i& teir averts are isla#e ill een uon various $a&tors in&luin8

te maFimum ail# sum) o$ten re$erre to as te ?maFimum ri&e er &li&B@) tat ea&

is reare to a#<

17< =e sear& term entere b# a user o$ te oo8le sear& en8ine an te Be#or

sele&te b# te avertiser o not ave to be ienti&al $or te sonsore linB to aear

on te 'E"5< Gne reason $or tis is tat avertisers ave te abilit# to &oose i$$erent

mat& t#es in relation to ea& Be#or) an tese mat& t#es 8overn te

&ir&umstan&es in i& te sonsore linBs asso&iate it tose Be#ors illaear< Dor eFamle) ?eFa&t mat&@ reuires te sear& term to be ienti&al to te

Be#orH ?rase mat&@ reuires te sear& term to &ontain te same ors as te

Be#or in te same orer) but it ma# in&lue aitional ors be$ore or a$ter te

Be#orH an ?broa mat&@ siml# reuires te sear& term to &orreson to

variations o$ te Be#or) su& as lurals< # 2009 oo8le a also introu&e a

eveloment o$ broa mat&in8 Bnon as ?avan&e broa mat&in8@ i& &auses

te sonsore linB to aear i$ te oo8le sear& en8ine eems te Be#or relevant

to te sear& term< 'o) b# a# o$ illustration) a sear& $or te term ?$loers@ mi8t be

eeme to mat& te Be#or ?$lorists@<

19< =ere is anoter $eature o$ te AWors servi&e i& e soul mention at tis

sta8e) an i& as introu&e b# oo8le to allo avertisers to limit te


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aearan&e o$ teir averts in resonse to sear& terms i& ere merel# relate to

teir Be#ors< =is $eature) &alle ?ne8ative mat&in8@) allos avertisers to se&i$#

sear& terms in resonse to i& teir avertisements ill not aear<

1< Jntil .a# 2009 oo8le oerate a oli in relation to AWors ereb# a trae

marB oner &oul noti$# oo8le tat it a re8istere a arti&ular or as a traemarB< Gn&e noti$ie) oo8le oul not allo tat or to be ur&ase b# anoter

traer as a Be#or< oever) in .a# 2009 oo8le &an8e its oli $or te Jnite

Kin8om an $rom tat time ermitte oter traers to ur&ase ors re8istere as

trae marBs as Be#ors) in&luin8 $or use in relation to 8oos or servi&es $or i&

tose trae marBs ere re8istere< =is means tat rival traers &an use Be#ors

su& as ?inter$lora@ it te result tat) en a user enters te or ?inter$lora@ into

te sear& en8ine) te avertisements isla#e on te 'E"5 in&lue te

avertisements o$ tose rivals $or 8oos an servi&es &overe b# tat trae marB<

20< =o $urter oints soul) oever) be note< Dirst) oo8le oes allo trae marB

oners to blo&B te use o$ trae marBs in avertisements aearin8 on te 'E"5<'e&on) rior to 2009 it as er$e&tl# ermissible $or rival traers su& as . ' to

ur&ase a 8eneri& term su& as ?$loers@ it te result tat a user inuttin8 a sear&

term su& as ?inter$lora $loers@ oul see uon te 'E"5 not >ust natural sear&

results $or ;nter$lora but also avertisements $or te 8oos an servi&es o$ tose rival

traers<

21< 'in&e 2003 . ' as bi on a lar8e number o$ 8eneri& Be#ors in its $loers

&amai8ns< ut in 2009 it seie te oortunit# o$$ere b# te &an8e in oo8les

oli an be8an biin8 on te or ?inter$lora@< ;n aition) it bi on a number o$

&lose variants o$ te or ?inter$lora@) a number o$ &ombinations o$ inter$lora it a

es&ritive term an ;nter$loras omain names an J"*s an variants o$ temH an italso bi on tese an oter inter$lora relate terms usin8 te broa an avan&e

broa mat& $a&ilities< All o$ tese Be#ors ave tri88ere te isla# o$

avertisements avin8 te $olloin8 8eneral $ormat:

?.' Dloers Gnline

eauti$ul Dres Dloers 5lants<

Grer b# ,


7/69


The 3ro"ee$!n5s

23< ;nter$lora rea&te immeiatel# an) on 7 .a# 2009) sent a letter alle8in8 trae marB

in$rin8ement an assin8 o$$< Gn 3 +e&ember 2009 te# be8an tese ro&eein8s

alle8in8 in$rin8ement o$ te $olloin8 re8istere trae marBs (?te =rae .arBs@! o$

i& te $irst &laimant is te re8istere rorietor an ;J is te li&ensee:

i! ?Jnite Kin8om =rae .arB No< 132940 ;N=E"D*G"A re8istere it

e$$e&t $rom 16 +e&ember 197 in rese&t o$ various 8oos an servi&es in

&lasses 16) 31) 3,) 39) 3) 41 an 42< =ese in&lue ?natural lants an

$loers@ in &lass 31) ?avertisin8 servi&es I rovie $or $lorists@ an

?in$ormation servi&es relatin8 to te sale o$ I $loers@ in &lass 3,)

?transortation o$ $loers@ in &lass 3<

ii! Communit# =rae .arB No< 0939 ;N=E"D*G"A re8istere it e$$e&t

$rom 1 Au8ust 19 in rese&t o$ various 8oos an servi&es in &lasses 16)

31) 3,) 39) 3) 41 an 42< =ese in&lue ?natural lants an $loers@ in &lass31) ?avertisin8 servi&es I rovie $or $lorists@ in &lass 3,) ?transortation

o$ $loers@ in &lass 3 an ?in$ormation servi&es relatin8 to te sale o$ I

$loers@ in &lass 42


8/69


29< At a earin8 be$ore Arnol % on 20 %une 2012) ;nter$lora sou8t ermission to

introu&e evien&e in te $orm o$ itness statements $rom an unse&i$ie number o$

iniviuals sele&te $rom nearl# 200 resonents 8atere b# means o$ to surve#s

te# a &arrie out in Debruar# an .ar& 2012< Arnol % a&&ee to tat

ali&ation< . ' aeale to tis &ourt an) $or te reasons set out in a >u8ment

8iven on 20 November 2012 ([2012] EWCA Civ 1,01) [2013] D'" 21 (? Interflora(CA I!@!) tat aeal as alloe< =e issues raise b# te aeal &on&erne te

amissibilit# o$ evien&e obtaine b# su& a surve# ere te trae marB rorietor

oes not inten to rel# uon te surve# itsel$< ;n te &ourse o$ is >u8ment) *eison

*% (it om u8es an Eterton *%% a8ree! 8ave eFtensive &onsieration to te

avera8e &onsumer test) an is reasonin8 as been eavil# relie uon b# . ' on

tis aeal<

2< Jnaunte) on 22 %anuar# 2013) ;nter$lora mae a $urter ali&ation $or ermission

to introu&e itness statements $rom 13 iniviuals ienti$ie b# means o$ a surve#

&arrie out in 'etember an G&tober 2012< Arnol % as a8ain ersuae tat

ermission soul be 8iven $or reasons e 8ave in is >u8ment 8iven on 21 Debruar#2013 ([2013] EWC 273 (C!!< oever) on&e more) an aeal a8ainst is orer as

alloe b# tis &ourt ([2013] EWCA Civ 31) [2013] D'" 26 (? Interflora (CA II!@!!<

*eison *% (it om 'ir "obin %a&ob an *on8more *% a8ree! emasise tat

evien&e o$ tis Bin soul onl# be amitte i$ it as o$ real value an even ten

onl# i$ te value >usti$ie te &ost< =e evien&e i not satis$# tis test an te >u8e

a been misle b# te imression &reate b# te itness statements en &omare

to te ra ata on i& te# ere base<

The r!1#

30< =e a&tion &ame on $or trial be$ore Arnol % on 1, Aril 2012< Gn te $irst a# te >u8e ear ar8ument uon an ob>e&tion b# . ' to te evien&e sou8t to be

introu&e b# ;nter$lora uner te Civil Evien&e A&t noti&e i& ;nter$lora a

serve uon . ' on 2, .ar& 2013) sortl# be$ore trial< =e noti&e ienti$ie 19

arti&les an reorts< 'ome a been rou&e b# G$&om) oo8le an ouov< Gters

ere a&aemi& arti&les o$ a broal# s&ienti$i& nature i& a been ublise in a

variet# o$ meia) in&luin8 a&aemi& >ournals< . ' ob>e&te to some but not all o$

te o&uments in te noti&e< Dor eFamle) it i not ob>e&t to te G$&om reorts< ut

it i ob>e&t to most o$ te a&aemi& arti&les) ar8uin8 tat te# amounte to eFert

evien&e i& as onl# amissible in a&&oran&e it C5" 5art 3,) an ;nter$lora

a neiter sou8t nor obtaine te ermission o$ te &ourt to rel# uon it) as te#

ere boun to o uner te rovisions o$ tat rule< ;n te alternative) it &ontenetat te &ourt soul eFer&ise its &ase mana8ement oers to eF&lue tem<

31< =e >u8e 8ave >u8ment tat same a# ([2013] EWC 36 (C!! (te ?>u8ment on

te amissibilit# o$ evien&e@!< e re>e&te . 's ob>e&tions) olin8 tat tese

o&uments i not $all itin te s&oe o$ 5art 3,) tat te# mi8t se li8t on te

attributes o$ reasonabl# ell-in$orme an reasonabl# observant internet users) an

tat ile e a s#mat# it te &on&erns o$ . ' tat it a onl# been 8iven

noti&e o$ te material at a ver# late sta8e o$ te ro&eein8s an altou8 e i not

Bno at a ier sear& o$ te literature mi8t ave tron u) tis i not maBe it

so un$air tat te evien&e soul be eF&lue) arti&ularl# sin&e . ' a Bnon

$or some time tat te &ourt oul be intereste in re&eivin8 ineenent evien&e


9/69


$rom ubli& sour&es) an it a onl# itsel$ to blame $or not investi8atin8 te matter

sooner< As e sall eFlain) . ' sa#s tat e $ell into error in so oin8<

32< Gn te se&on a# o$ te trial te >u8e ear ar8ument uon an ob>e&tion b# . '

to te amission o$ statements o$ oinion b# .r "ose) an emlo#ee o$ te online

marBetin8 &oman# i& mana8e ;nter$loras Be#or avertisin8< e aeFresse te vie in is itness statement tat most eole i not are&iate te

i$$eren&e beteen natural sear& results an sonsore linBs< =e >u8e uel te

ob>e&tion) sa#in8 tat e oul atta& no ei8t to .r "oses evien&e so $ar as e

sou8t to eFress oinions about te er&etions o$ ersons oter tan imsel$< ;n

&onseuen&e e as not &ross-eFamine uon tat evien&e b# &ounsel $or . '<

Gne o$ . 's &omlaints uon tis aeal is tat) notitstanin8 tis rulin8) te

>u8e ro&eee to rel# uon te evien&e o$ .r "ose in rea&in8 is &on&lusion on

te in$rin8ement issue<

33< A8ain on te se&on a# o$ te trial) te >u8e as $a&e it anoter isute) tis

time &on&ernin8 te evien&e o$ .r arrin8er) te .arBetin8 +ire&tor o$ ;J an te erson o as at all material times in &ar8e o$ all o$ ;nter$loras marBetin8 an

avertisin8 in te Jnite Kin8om< .r arrin8ers itness statement ate 2, .ar&

2013 &ontaine er$e&tl# amissible evien&e about ;nter$loras $loer eliver#

business an teir marBetin8 e$$orts< oever) .r arrin8er eFibite to is

statement a reort i& ;nter$lora a &ommissione $or tis liti8ation $rom an

or8anisation &alle EFerian itise (?itise@!) an e eFresse oinions in is

statement as to te &on&lusions i& e &onsiere &oul be ran $rom it< . '

ob>e&te to te amission o$ tese eFressions o$ oinion b# .r arrin8er an sou8t

an orer tat it be ermitte to &ross-eFamine te autor o$ te itise reort) a .r

Anan8 5an#a<

34< =e >u8e a&&ee to tis ali&ation) eterminin8 tat ;nter$lora oul not be

ermitte to rel# uon .r arrin8ers oinionsH nor oul te# be ermitte to rel#

uon te itise reort unless .r 5an#a as mae available $or &ross-eFamination<

=e >u8e also 8ave ;nter$lora ermission to issue a itness summons an to serve it

uon .r 5an#a reuirin8 is attenan&e at trial< .r 5an#a ul# i atten on te

$ourt a# o$ te trial an as &ross-eFamine< . ' sa#s uon tis aeal tat it

be&ame &lear $rom tis &ross-eFamination tat .r 5an#a &onsiere) $or 8oo

reason) tat te itise reort rovie no basis $or in$errin8 te eFisten&e o$

&on$usion in te mins o$ internet users arisin8 $rom te use b# . ' o$ te or

?inter$lora@ as a Be#or) #et tat is at te >u8e ro&eee to use it $or) an tat in

so oin8 e a8ain $ell into material error< 'o tis is anoter matter to i& e mustreturn<

The 21!n =u$52en

3,< Gn 21 .a# 2013 te >u8e elivere is main >u8ment ([2013] EWC 121 (C!!

(te ?main >u8ment@!< ;t is a substantial an ver# &are$ull# &onsiere o&ument)

eFtenin8 to 320 ara8ras< At tis sta8e e o no more tat set out an outline o$ its

stru&ture an te >u8es main &on&lusions<

36< =e $irst se&tions o$ te >u8ment are &on&erne it te >u8es assessment o$ te

itnesses tat e ear an te $a&tual ba&B8roun< ;t is rimaril# in tese arts o$ te


10/69


>u8ment tat &onsieration is 8iven to te various eviential matters to i& e

ave re$erre an about i& . ' &omlains<

37< =e >u8e ten embarBe uon a etaile &onsieration o$ te la an aresse te

&on&et o$ te avera8e &onsumer ($rom [14] to [224]! an te >urisruen&e o$ te

Court o$ %usti&e on Be#or avertisin8 ($rom [22,] to [291]!< =e lar8e art o$ teanal#sis o$ tis >urisruen&e ($rom [22,] to [267]! is &on&erne it te e$$e&t o$

Be#or avertisin8 uon te ori8in $un&tion o$ a trae marB) an in te &ourse o$ it

te >u8e eFoune is vie) $irst eFresse in "atacar# v Eagle $ec%nologies Lt#

[2011] EWC 244 (5at!) [2011] "5C 17) tat te test uner Arti&le ,(1!(a! o$ te

+ire&tive (Arti&le (1!(a! o$ te "e8ulation! is a test o$ a liBelioo o$ &on$usion but

it a reverse onus) tat is to sa# tat te onus) or at least te eviential onus) lies

uon te erson a&&use o$ in$rin8ement to so tat te use &omlaine o$ is not

ob>e&tionable<

39< =e >u8e turne ($rom [269] to [26]! to te e$$e&t o$ Be#or avertisin8 uon te

avertisin8 $un&tion o$ a trae marB an eFlaine tat) as as &ommon 8roun) tis$un&tion &oul not be a$$e&te b# use o$ a si8n in Be#or avertisin8 o$ te Bin in

issue< An anal#sis o$ te e$$e&t o$ Be#or avertisin8 uon te investment $un&tion

o$ a trae marB $ollos $rom [270] to [274]) an te >u8e &on&lue (at [274]! tat

tis $un&tion oul be aversel# a$$e&te b# an averse e$$e&t uon te reutation o$

te trae marB<

3< Arti&le ,(2! o$ te +ire&tive an Arti&le (1!(&! o$ te "e8ulation are &onsiere $rom

[27,] to [291]< =e >u8e eFlaine tat) i$ ;nter$lora $aile to establis tat te use

&omlaine o$ a an e$$e&t uon te ori8in $un&tion ten) in is vie) te &ase tat it

&ause etriment to te istin&tive &ara&ter o$ te marB must also $ail< As $or un$air

avanta8e) te >u8e summarise te 8uian&e 8iven b# te Court o$ %usti&e in Interflora (CJE! as bein8 tat an avertiser o sele&ts a trae marB it a

reutation as a Be#or) an so obtains &ustom $rom &onsumers instea o$ te trae

marB rorietor) obtains a real avanta8e $rom te istin&tive &ara&ter an reute o$

te trae marB an oes so itout &omensatin8 te rorietor< Durter) tis must be

&onsiere to be an un$air avanta8e in te absen&e o$ ue &ause< oever) i$ te

avertisement o$$ers an alternative to te 8oos or servi&es o$ te rorietor an oes

so itout o$$erin8 a mere imitation o$ tem or &ausin8 ilution or tarnisment o$ te

trae marB or aversel# a$$e&tin8 te $un&tions o$ te trae marB) ten as a rule te

use &onstitutes $air &ometition an is not itout ue &ause<

40< =e $inal se&tion o$ te >u8ment ($rom [299] to [323]! &ontains te >u8esassessment< ere te >u8e ealt $irst ($rom [299] to [23]! it at e es&ribe as

8eneral oints< e note te &ommon 8roun tat Be#or avertisin8 as not

inerentl# or inevitabl# ob>e&tionable) an tat . 's avertisements must be

&onsiere $rom te erse&tive o$ te reasonabl# ell-in$orme an reasonabl#

observant internet user) initiall# as at .a# 2009) te ate o$ te &ommen&ement o$ te

a&tivities &omlaine o$< =e >u8e ten re$erre to te attemts b# ;nter$lora to

au&e ire&t evien&e as to &onsumer rea&tion to te avertisin8 in issue< e

eFlaine tat tis evien&e tooB te $orm o$ te itness statements $rom itnesses

sele&te $rom te resonents to te surve#s to i& e ave re$erre) but tat tis

&ourt a re>e&te tat evien&e as avin8 no real value in its Interflora (CA I! an

Interflora (CA II! >u8ments< Conversel#) e note tat . ' a mae no attemt


11/69


to au&e an# ire&t evien&e o$ &onsumer rea&tion) an tat as so esite te $a&t

tat . ' as ell la&e to o so< e ut it tis a# at [23]:

?I =us . ' a mae no attemt to rove tat &ustomers

o sear& $or) sa#) Linter$lorau8e to te eart o$ is reasonin8 an $rom [24] to [319] e ealtit te &ase uner Arti&le ,(1!(a! (an Arti&le (1!(a!! an te e$$e&t o$ te Be#or

avertisin8 in issue on te ori8in $un&tion o$ te =rae .arBs< e be8an (at [2,] to

[27]! b# &onsierin8 tree $a&tors ienti$ie b# te Court o$ %usti&e as relevant to te

assessment< =e $irst as eter te reasonabl# ell-in$orme an reasonabl#

observant internet user as eeme to be aare tat . 's $loer eliver# servi&e

as not art o$ te ;nter$lora netorB) but as in &ometition it it< =e >u8e as

not satis$ie tat tis as 8enerall# Bnon in .a# 2009H nor as e satis$ie tat it

as 8enerall# Bnon at te ate o$ is >u8ment<

42< =e se&on as eter . 's avertisements enable te reasonabl# ell-

in$orme an reasonabl# observant internet user to tell tat . 's $loer eliver#servi&e as not art o$ te ;nter$lora netorB< A8ain) te >u8e i not a&&et tat

te# i<

43< =e tir as te nature o$ te ;nter$lora netorB< ere te >u8e a8ree it te

Court o$ %usti&e tat te nature o$ te ;nter$lora netorB mi8t maBe it arti&ularl#

i$$i&ult $or te reasonabl# ell-in$orme an reasonabl# observant internet user to

etermine) in te absen&e o$ an# ini&ation in te avertisement) eter . 's

servi&e as art o$ tat netorB or not<

44< =e >u8e ten turne ($rom [2] to [310]! to siF arti&ular matters relie uon b#

;nter$lora< =e $irst as tat . ' a a&ieve mu& better results b# biin8 on;nter$lora-relate Be#ors tan it a b# biin8 on oter brans as Be#ors< ere

te >u8e a&&ete ;nter$loras submission tat tis &alle $or an eFlanation) an

$urter) tat te onl# &reible one la# in te nature o$ te brans: be&ause ;nter$lora

si8ni$ie a netorB) ereas te oter brans i not) &onsumers ere more liBel# to

believe tat tere as a &onne&tion beteen . ' an te bran te &onsumers a

sear&e $or<

4,< =e se&on matter as te anal#sis o$ te itise ata &onu&te b# .r 5an#a< As

e ave mentione) tis is a arti&ular $o&us o$ . 's submissions on tis aeal

an e eal it it in etail later in tis >u8ment< At tis sta8e e nee onl# sa# tat

. 's &omlaint as to searate but relate limbsH te $irst is tat te >u8e relie


12/69


uon te itise ata at all) an te se&on is tat te >u8e in>e&te into is anal#sis

te notion o$ initial interest &on$usion<

46< =e tir) $ourt an $i$t matters &an be taBen uite sortl# be&ause te >u8e $elt

te# ae little to ;nter$loras &ase< =e# ere) rese&tivel#) various oter itise

reorts i& ;J a obtaine in te orinar# &ourse o$ its businessH te $a&t tat . ' a 8iven is&losure $rom its &ustomer re&ors o$ siF ossible instan&es o$

&on$usionH an te $a&t tat te 8rot in . 's $loer business sin&e 2009 as

rou8l# eual to te e&line in ;nter$loras revenue over te same erio<

47< =e siFt matter &on&erne te a&&etan&e b# man# . ' itnesses tat &onsumers

sear&in8 $or ?inter$lora@ ere looBin8 $or ;nter$lora) tat is to sa# te# ere not

usin8 ?inter$lora@ as a 8eneri& term< . ' &ontene at trial tat &onsumers o

ten &li&Be on . ' avertisements a &an8e teir mins< =e >u8e reiterate

tat . ' a not au&e an# evien&e in suort o$ tis &ontention but tat i

not mean e &oul not maBe is on assessment) i& e ro&eee to o in tese

terms (at [310]!:

?I ; am reuire to &onsier te ima&t o$ . 'Ms

avertisements viee in te &onteFt o$ te 'E"5s on

reasonabl# ell-in$orme an reasonabl# observant internet

users< =e evien&e in tis &ase enables me to ut m#sel$ in te

osition o$ te reasonabl# ell-in$orme an reasonabl#

observant internet user< ; ave no oubt tat te ma>orit# o$

&onsumers o &li&B on . 'Ms avertisements o so be&ause

te# ave been ersuae to taBe teir &ustom to . ' an

not be&ause te# believe tat . ' is art o$ te ;nter$lora

netorB< =at oes not eF&lue te ossibilit# tat a si8ni$i&ant roortion o$ &onsumers o believe tat tere is a &onne&tion)

oever


13/69


tat it ma# terea$ter ave resume biin8 on ?inter$lora@ an similar terms)

altou8 to an eFtent i& as un&lear< =en) in 200) te business as a&uire b#

;J< ;n all tese &ir&umstan&es te >u8e i not &onsier te a&tivities o$ Dloers

+ire&t to be o$ mu& assistan&e<

,0< =e tir an $inal matter relate to te e$$e&t o$ biin8 on 8eneri& terms< As eave eFlaine) bot be$ore an a$ter oo8les &an8e o$ oli in .a# 2009)

avertisers bi on 8eneri& Be#ors su& as ?$loers@ it te result tat sear&es $or

su& terms resulte in avertisements bein8 isla#e to users it a variet# o$

alternative bran o$$erin8s< 'o also) sear&es $or a &ombination o$ a bran name an a

8eneri& term) su& as ?Asa $loers@) rou&e te same result< =e >u8e $elt tere

ere to roblems it tis submission< =e $irst as tat) altou8 te ma>orit# o$

internet users a ala#s been aare o$ te istin&tion beteen natural sear& results

an ai avertisements) a si8ni$i&ant roortion o$ internet users a never

are&iate tat istin&tion< =e se&on as tat a si8ni$i&ant roortion o$

&onsumers oul not ave been aare o$ oo8les &an8e in oli an oul not

ave orBe out $or temselves tat on sear&in8 $or ?inter$lora@ te# ere bein8 resente it avertisements $or &ometitive brans<

,1< =e >u8e ten &ame to is overall &on&lusion on tis ase&t o$ te in$rin8ement

&laim:

319< Conclusion< =aBin8 into a&&ount te $a&tors mentione

b# te C%EJ) te $a&tors relie uon b# ;nter$lora an te

$a&tors relie uon b# . ') te &on&lusion ; ave rea&e is

tat) as at 6 .a# 2009) te . ' avertisements i& are te

sub>e&t o$ ;nter$loraMs &laim i not enable reasonabl# ell-

in$orme an reasonabl# attentive internet users) or enabletem onl# it i$$i&ult#) to as&ertain eter te servi&e

re$erre to in te avertisements ori8inate $rom te rorietor

o$ te =rae .arBs) or an unertaBin8 e&onomi&all# &onne&te

it it) or ori8inate $rom a tir art#< Gn te &ontrar#) as at 6

.a# 2009) a si8ni$i&ant roortion o$ te &onsumers o

sear&e $or Linter$loraL an te oter 'i8ns) an ten &li&Be

on . 'Ms avertisements isla#e in resonse to tose

sear&es) ere le to believe) in&orre&tl#) tat . 'Ms $loer

eliver# servi&e as art o$ te ;nter$lora netorB< =us .

'Ms use o$ te 'i8ns a an averse e$$e&t on te ori8in $un&tion

o$ te =rae .arBs< Durtermore) ; &on&lue tat tis is still te&ase even no< ;t $ollos tat . ' as in$rin8e te =rae

.arBs uner Arti&le ,(1!(a! o$ te +ire&tive an Arti&le (1!(a!

o$ te "e8ulation< @

,2< =e >u8e ealt it te remainin8 eas o$ te &laim in &on&ise terms an on te

assumtion tat . 's a&tivities a no averse e$$e&t on te ori8in $un&tion o$ te

=rae .arBs< Gn tis basis) e as not satis$ie tere a been an# ama8e to

;nter$loras ima8e an &onseuentl# e as not ersuae tat tere a been an#

averse e$$e&t uon te reutation atta&in8 to te =rae .arBs or teir investment

$un&tion< Dor liBe reasons e el tat te &laim uner Arti&le ,(2! (an Arti&le (1!

(&!! must also $ail< ;$ tere as no e$$e&t on te ori8in $un&tion) te &laim $or ilution


14/69


&oul not su&&ee an te a&tivities o$ . ' i not) itout ue &ause) taBe un$air

avanta8e o$ te istin&tive &ara&ter an reute o$ te =rae .arBs<

The 1$$!!on1# =u$52ens

,3< A $urter earin8 tooB la&e be$ore te >u8e on 23 .a# 2013) on i& o&&asion ee&ie ([2013] EWC 1430! tat . ' must a# , o$ ;nter$loras &osts an tat

it must ost an aroriate noti&e on its ebsite rain8 attention to te main

>u8ment< . ' also alie $or ermission to aeal on a &onsierable number o$

8rouns) i& ali&ation te >u8e a&&ee to in art) 8rantin8 ermission on some

8rouns but re$usin8 it on oters< Gn 11 November 2013) . 's renee

ali&ation to tis &ourt $or ermission on all oter 8rouns as a>ourne b# Kit&in

*% to te earin8 o$ te substantive aeal<

,4< et anoter earin8 tooB la&e be$ore te >u8e on 12 %une 2013 to e&ie te $orm

an s&oe o$ te in>un&tion< =ree issues arose) ea& o$ i& as ealt it b# te

>u8e in is se&on aitional >u8ment ([2013] EWC 1494 (C!! (te ?se&onaitional >u8ment@!< =e $irst &on&erne ;nter$loras &omlaint) introu&e b#

amenment) tat . ' a bi not >ust on ?inter$lora@ an erivatives o$ it but also

on oter $loer-relate terms itout ne8ativel# mat&in8 ?inter$lora@< As te >u8e

eFlaine (at [7]!) oo8les avan&e broa mat&in8 al8oritm &an ave te result

tat) en a &onsumer sear&es $or ?inter$lora@) an . ' avertisement is isla#e

be&ause . ' as bi on) $or eFamle) ?$loer eliver#@< ;n is main >u8ment te

>u8e eFlaine (at [179]! tat tere as no isute tat . ' a use te si8n

?inter$lora@) $or tat is at te >u8e unerstoo $rom te ar8uments resente at

trial< =at as not) oever) te &ase) $or . ' i not a&&et tat it use te si8n

?inter$lora@ en it bi on oter $loer relate Be#ors itout ne8ativel# mat&in8

? inter$lora@< =is misunerstanin8 a be&ome &lear b# 1, %une an so te >u8ese&i$i&all# aresse tis issue in te se&on aitional >u8ment< e &ame to te

&on&lusion tat . ' a still use te si8n ?inter$lora@) altou8 less ire&tl#<

,,< =e se&on issue &on&erne te se&i$i&it# o$ te in>un&tion< ;nter$lora sou8t an

in>un&tion in &onventional $orm) tat is to sa#) to restrain in$rin8ement o$ te =rae

.arBs< . ' resone tat su& an in>un&tion oul be isroortionate or

oterise &ontrar# to Arti&le 3 o$ +ire&tive 2004/49/EC (?te En$or&ement

+ire&tive@!) an arti&ularl# so bearin8 in min te limite nature o$ te in$rin8in8

a&tivit# o$ i& it a been $oun 8uilt#< =e >u8e &on&lue ;nter$lora as entitle

to a &onventional in>un&tion) $inin8 tat te &ourts normal ra&ti&e as not

ne&essaril# isroortionate or &ontrar# to te En$or&ement +ire&tive) arti&ularl#sin&e te &ourt &oul) in an aroriate &ase) 8rant e&larator# relie$) as it i in 'otel

Cipriani Srl v Fre# )* Lt# (for+erl, Cipriani (Grosvenor Street! Lt#! [2013] EWC

70 (C!< Durter) te >u8e &ontinue) . ' a eliberatel# en8a8e in a &ourse o$

&onu&t ell Bnoin8 tere as a risB it mi8t be $oun to ave in$rin8e te =rae

.arBs) an it a use a lon8 list o$ si8ns an a variet# o$ mat&in8 al8oritms<

,6< =e $inal issue &on&erne te 8eo8rai&al s&oe o$ te in>un&tion< ;nter$lora

&ontene te# ere entitle to an EJ-ie in>un&tion to restrain in$rin8ement o$ te

Communit# trae marB an relie in tat &onne&tion uon te rulin8 o$ te Court o$

%usti&e in Case C-23,/0 "'L E-press France SAS v C%ronopost SA [2011] D'" 39

tat a roibition a8ainst $urter in$rin8ement or treatene in$rin8ement o$ aCommunit# trae marB must) as a rule) eFten to te entire area o$ te EJ< =is as


15/69


resiste b# . '< Gn&e a8ain te >u8e a&&ete ;nter$loras &ontention< e el tat

. ' a not rove tat tat use o$ te ?inter$lora@ si8n in Be#or avertisin8 i

not a$$e&t) an as not liable to a$$e&t) te $un&tions o$ te Communit# trae marB in

oter .ember 'tates an so te in>un&tion must be EJ-ie<

The 133e1# > he !ssues

,7< =e arties ave been reresente on tis aeal as te# ere be$ore te >u8e< .r

eo$$re# obbs C an .iss Emma imsort C ave aeare on beal$ o$ .

' an .r .i&ael 'ilverlea$ C an .r 'imon .al#ni& ave aeare on beal$ o$

;nter$lora< ;n te &ourse o$ is submissions .r obbs as mounte a ie ran8in8

an $or&e$ul atta&B uon te aroa& aote an &on&lusions rea&e b# te >u8e

in is >u8ment on te amissibilit# o$ evien&e) is main >u8ment an is se&on

aitional >u8ment< Dor is art an it eual vi8our an etermination) .r

'ilverlea$ as e$ene all o$ te >u8es &on&lusions an mu& o$ is reasonin8< =e

ar8uments o$ bot &ounsel ave been o$ te i8est ualit# an e are most 8rate$ul

$or all o$ te el te# an tose assistin8 tem ave rovie to us<

,9< We are o$ te vie tat te 8rouns o$ aeal an te submissions o$ .r obbs $all

into various 8rous< Dirst) .r obbs oints to te $inin8 o$ te >u8e in te main

>u8ment at [310] to i& e ave alrea# re$erre but te material art o$ i&

bears reetition:

?; ave no oubt tat te ma>orit# o$ &onsumers o &li&B on

. 'Ms avertisements o so be&ause te# ave been

ersuae to taBe teir &ustom to . ' an not be&ause te#

believe tat . ' is art o$ te ;nter$lora netorBu8e sai tis about te aareness o$ internet users o$ te

istin&tion beteen ai avertisements an te natural sear& results on te 'E"5:

?; o not oubt tat) as at 6 .a# 2009) te ma>orit# o$ internet

users ere aare o$ tis istin&tion) or tat) sin&e ten) te

roortion o$ internet users o are aare o$ it as steail#

in&reaseu8e eFresse is &on&lusion about te

avertisements in issue in tis a#:

?No oubt) man# &onsumers orBe out $or temselves tat

te# ere bein8 resente it avertisements b# &ometitors

to te bran te# a sear&e $or esite not bein8 tol tis<

Durtermore) ; am &on$ient tat noaa#s te ma>orit# o$

&onsumers are&iate tis< ut ; &onsier tat a si8ni$i&ant

roortion o notu8e to re>e&t te

in$rin8ement &laim on a &orre&t ali&ation o$ te reasonabl# ell-in$orme an

reasonabl# observant internet user test< oever) e &ontinues) te >u8e

misinterrete an misalie tis test an ron8l# &onverte at is) on a &orre&tali&ation o$ te la) a #oteti&al erson it an ob>e&tivel# e$ine stanar o$


16/69


Bnole8e an ersi&a&it# into a oulation o$ iniviuals it var#in8 e8rees o$

Bnole8e an ersi&a&it#< Durter) sa#s .r obbs) te >u8e ron8l# set te bar $or

in&lusion o$ iniviuals in tis oulation too lo in tat e onl# eF&lue tose o

ere ill-in$orme or unobservant) an ron8l# el tat in$rin8ement oul be

establise i$ te avertisements &ause a si8ni$i&ant number o$ te &lass o$ ersons

so e$ine ron8l# to believe tat te avertise 8oos or servi&es o$ . ' ere&onne&te it ;nter$lora<

62< .r obbs neFt &ontens tat te >u8e ron8l# &an8e te test $or liabilit# $rom a

uestion about eter . 's avertisements oul enable te reasonabl# ell-

in$orme an reasonabl# observant internet user to 8ras itout i$$i&ult# tat

;nter$lora an . ' ere ineenent into a stri&t obli8ation o$ broaer s&oe

reuirin8 . ' to ensure tat tat its avertisements mae it &lear tat its avertise

8oos an servi&es i not ori8inate $rom ;nter$lora< Durter an imortantl#)

&ontinues .r obbs) te >u8e ron8l# el it as $or . ' to isrove

in$rin8ement b# soin8 tat te use o$ te si8n ?inter$lora@ as su$$i&ientl# &lear

tat tere as no real risB o$ &on$usion as to te ori8in o$ its 8oos an servi&es<

63< =e neFt 8rou o$ errors &ontene $or b# .r obbs are &on&erne it initial

interest &on$usion< ere) ar8ues .r obbs) te >u8e $ell into error be&ause e

ron8l# e&ie tat su& initial interest &on$usion as su$$i&ient to establis

liabilit#< 'o) rain8 tese treas to8eter) .r obbs ar8ues tat te >u8e ron8l#

e&ie tat $or . ' to ne8ate te in$rin8ement alle8ation) it a to rove te

absen&e o$ an# real risB o$ initial interest &on$usion as to te ori8in o$ its 8oos an

servi&es on te art o$ an# si8ni$i&ant roortion o$ te oulation o$ ersons

re8are b# te >u8e as bein8 roF# $or te reasonabl# ell-in$orme an reasonabl#

observant internet user<

64< All o$ tese errors are) sa#s .r obbs) a&&omanie an inee &omoune b#

serious ro&eural irre8ularities in tat te >u8e ron8l# alloe ;nter$lora to rel#

uon te a&aemi& arti&les te sub>e&t o$ is >u8ment on te amissibilit# o$

evien&e) an ron8l# relie uon te evien&e o$ .r "ose esite avin8 sai tat

e oul not o so< Durter) &ontinues .r obbs) te >u8e $aile to ave roer

re8ar to te absen&e o$ an# leae or sustainable &ase $or treatin8 te er$orman&e

o$ ?inter$lora@ as a Be#or as in$ormative or robative it rese&t to te relevant

test $or liabilit#H te evien&e o$ .r 5an#a i& ositivel# establise tat te

anal#sis an observations in is reort ere neiter in$ormative nor robativeH te

evien&e &on$irmin8 tat &ometitive bran biin8) in&luin8 on ?inter$lora@) as

iesreaH te evien&e tat it as imossible $or a &ommer&ial transa&tioninvolvin8 ;nter$lora to taBe la&e itout ;nter$loras involvement bein8 si8ni$ie b#

some $orm o$ ;nter$lora branin8H te evien&e tat Dloers +ire&t an ;nter$lora

ere &ometin8 oerations an resente as alternativesH te evien&e tat . ' an

its brans ere at all times iel# use an re&o8niseH an te evien&e tat internet

sear&ers ere use to seein8 &ometin8 o$$ers en te# use 8eneri& sear& terms

an &omosite sear& terms in&luin8 a 8eneri& term an a bran name< ;n so $ar as

.r obbs nees $ormal ermission to rel# uon some o$ tese 8rouns) e 8ive it<

6,< =urnin8 to te se&on aitional >u8ment) .r obbs &ontens tat even i$) i& e

oes not a&&et) tere as an# roer basis $or 8rantin8 relie$ a8ainst . ') te

>u8e 8rante an in>un&tion i& la&Be te ne&essar# e8ree o$ se&i$i&it# an

re&isionH i& ron8l# imose an obli8ation uon . ' to ne8ativel# mat& te


17/69


sear& term ?inter$lora@H an i& ron8l# eFtene to te ole o$ te EJ< .r

obbs &ontinues tat te in>un&tion 8rante b# te >u8e an its reuirement $or

ne8ative mat&in8 amounte to an entirel# isroortionate inter$eren&e it . 's

ri8t to trae an its ri8t to $reeom o$ &ommer&ial eFression<

66< We ill eal it all o$ tese &ontentions) an .r 'ilverlea$s robust e$en&e o$ te >u8es &on&lusions) in turn an ill o so uner te $olloin8 eain8s:

i! te avera8e &onsumerH

ii! te onus o$ roo$H

iii! initial interest &on$usionH

iv! ro&eural irre8ularities an errors on te evien&eH

v! in>un&tive relie$ an ne8ative mat&in8<

ut be$ore oin8 so e must sa# some more about te >urisruen&e o$ te Court o$

%usti&e on Be#or avertisin8< We ill $o&us) so $ar as ossible) uon te otential

e$$e&t o$ su& avertisin8 on te ori8in $un&tion) $or ;nter$lora ave not sou8t to

&allen8e te >u8es &on&lusion tat i$ te &ase uner Arti&le ,(1!(a! o$ te +ire&tive

(an Arti&le (1!(a! o$ te "e8ulation! base uon e$$e&t on te ori8in $un&tion ere

to $ail ten a &ase base uon an e$$e&t uon an# oter $un&tion or uner Arti&le ,(2!

(an Arti&le (1!(&!! must $ail too< =ese oter a#s o$ eveloin8 te in$rin8ement

alle8ation tere$ore a notin8 to te arti&ular &laim be$ore us< oever) e &annot

limit our &onsieration to te e$$e&t o$ su& avertisin8 uon te ori8in $un&tion in

li8t o$ te ie ran8in8 nature o$ te >u8es anal#sis an te 8rouns o$ aeal toi& it 8ives rise<

Ke40or$ 1$:er!s!n5

67< We be8in it te &ommon 8roun tat) in orer to establis in$rin8ement uner

Arti&le ,(1!(a! o$ te +ire&tive (or Arti&le (1!(a! o$ te "e8ulation!) te rorietor o$

a trae marB must rove tat te $olloin8 siF &onitions are satis$ie) namel# (i!

tere must be use o$ a si8n b# a tir art# itin te relevant territor#H (ii! te use

must be in te &ourse o$ traeH (iii! it must be itout te &onsent o$ te rorietorH

(iv! it must be o$ a si8n i& is ienti&al it te trae marBH (v! it must be in

relation to 8oos or servi&es i& are ienti&al it tose $or i& te trae marB is

re8istereH an (vi! it must a$$e&t or be liable to a$$e&t one o$ te $un&tions o$ te trae

marB< =e nee $or ea& o$ tese &onitions to be satis$ie as been mae &lear in a

series o$ e&isions o$ te Court o$ %usti&e over man# #ears) as te >u8e eFlaine at

[177] o$ te main >u8ment<

69< A rorietor o$ a re8istere trae marB alle8in8 in$rin8ement uner Arti&le ,(1!(b! o$

te +ire&tive (Arti&le (1!(b! o$ te "e8ulation! must also satis$# siF &onitions)

namel# (i! tere must be use o$ a si8n b# a tir art# itin te relevant territor#H

(ii! te use must be in te &ourse o$ traeH (iii! it must be itout te &onsent o$ te

rorietorH (iv! it must be o$ a si8n i& is ienti&al it or similar to te trae

marBH (v! it must be in relation to 8oos or servi&es i& are ienti&al it or similar to tose $or i& te trae marB is re8istereH an (vi! it must 8ive rise to a


18/69


liBelioo o$ &on$usion< ;n Specsavers International 'ealt%care Lt# v As#a Stores Lt#

[2012] EWC Civ 24) [2012] D'" 1) tis &ourt ienti$ie (at [,1] to [,2]! a number

o$ imortant e&isions o$ te Court o$ %usti&e i& eFlain te &orre&t aroa& to

te assessment o$ te liBelioo o$ &on$usion) an e enorse a series o$ Be#

rin&iles aote an use b# te =rae .arBs "e8istr# as bein8 su$$i&ient $or te

etermination o$ man# o$ te isutes &omin8 be$ore it<

6< ;t is &onvenient also to mention at tis sta8e te essential elements o$ a &laim $or

in$rin8ement o$ a re8istere trae marB uner Arti&le ,(2! o$ te +ire&tive (Arti&le

(1!(&! o$ te "e8ulation!< =e# are: (i! te re8istere trae marB must ave a

reutation in te relevant territor#H (ii! tere must be use o$ a si8n b# a tir art# in

te relevant territor#H (iii! te use must be in te &ourse o$ traeH (iv! it must be

itout te &onsent o$ te rorietorH (v! it must be o$ a si8n i& is ienti&al it

or similar to te trae marBH (vi! it must be in relation to 8oos or servi&esH (vii! it

must 8ive rise to a linB beteen te si8n an te trae marB in te min o$ te avera8e

&onsumerH (viii! it must 8ive rise to one o$ tree t#es o$ in>ur#) tat is to sa#) (a!

etriment to te istin&tive &ara&ter o$ te trae marB) (b! etriment to te reute o$ te trae marB) or (&! un$air avanta8e bein8 taBen o$ te istin&tive &ara&ter or

reute o$ te trae marBH an (iF! it must be itout ue &ause<

70< "evertin8 no to te &laim in te resent &ase uner Arti&le ,(1!(a! (an Arti&le (1!

(a!!) . ' a&&ets tat ea& o$ te $irst $ive &onitions is satis$ie in tis &ase in so

$ar as te &laim is base uon te use b# . ' o$ ?inter$lora@ as a Be#or<

oever an as e ave ini&ate) . ' as never a&&ete tat it as an obli8ation

to ne8ativel# mat&) an in tat re8ar as ala#s isute tat its $ailure to eF&lue a

si8n $rom broa or avan&e broa mat&in8 involves an# use o$ tat si8n in te

&ourse o$ its trae< =is is an issue i& e aress later in tis >u8ment in

&onsierin8 te >u8es se&on aitional >u8ment<

71< We tere$ore turn to te >urisruen&e o$ te Court o$ %usti&e on te trae marB

imli&ations o$ Be#or avertisin8 an be8in it te e&ision o$ te ran

Camber in Google France to i& e ave alrea# re$erre< ;n to o$ te tree

&ases be$ore te Court te trae marB oner avan&e a &laim onl# a8ainst oo8le

Dran&e< ;n te tir) te trae marB oner avan&e &laims a8ainst bot oo8le

Dran&e an te avertiser< =e Court $irst &onsiere te issue o$ use o$ te si8n in

te &ourse o$ trae< 'o $ar as te avertiser as &on&erne) te osition as relativel#

&lear< ;t &ose an sele&te as a Be#or a si8n ienti&al to te trae marB< =is

&onstitute use o$ te si8n in te &ourse o$ trae:

?,1< Wit re8ar) $irst) to te avertiser ur&asin8 te

re$eren&in8 servi&e an &oosin8 as a Be#or a si8n ienti&al

it anoters trae marB) it must be el tat tat avertiser is

usin8 tat si8n itin te meanin8 o$ tat &ase la<

,2< Drom te avertisers oint o$ vie) te sele&tion o$ a

Be#or ienti&al it a trae marB as te ob>e&t an e$$e&t o$

isla#in8 an avertisin8 linB to te site on i& e o$$ers is

8oos or servi&es $or sale< 'in&e te si8n sele&te as a Be#or

is te means use to tri88er tat a isla#) it &annot be

isute tat te avertiser inee uses it in te &onteFt o$ &ommer&ial a&tivit# an not as a rivate matter


19/69


72< # &ontrast) te re$eren&e servi&e rovier) ere oo8le Dran&e) tou8 &arr#in8 on a

trae) as not itsel$ usin8 te si8n:

?,6< ;n tat re8ar) su$$i&e it to note tat te use) b# a tir

art#) o$ a si8n ienti&al it) or similar to) te rorietors

trae marB imlies) at te ver# least) tat tat tir art# useste si8n in its on &ommer&ial &ommuni&ation< A re$eren&in8

servi&e rovier allos its &lients to use si8ns i& are

ienti&al it) or similar to) trae marBs) itout itsel$ usin8

tose si8nsust as te use b# an avertiser) in a &omarative

avertisement) o$ a si8n ienti&al to te trae marB o$ a &ometitor $or te uroses o$

ienti$#in8 te 8oos or servi&es o$ te &ometitor an &omarin8 its on 8oos or

servi&es it tem) &onstitutes use o$ te si8n in relation to te 8oos or servi&es $or

te uroses o$ Arti&le ,(1!(a!) so too oes use b# an avertiser o$ su& a si8n as a

Be#or $or use in an internet re$eren&in8 servi&e:

?6< ;n tat situation) &ara&terise b# te $a&t tat a si8n

ienti&al it a trae marB is sele&te as a Be#or b# a

&ometitor o$ te rorietor o$ te marB it te aim o$

o$$erin8 internet users an alternative to te 8oos or servi&es o$

tat rorietor) tere is a use o$ tat si8n in relation to te

8oos or servi&es o$ tat &ometitor


20/69


it i$$i&ult#) to as&ertain eter te 8oos or servi&es

re$erre to b# te a ori8inate $rom te rorietor o$ te trae

marB or an unertaBin8 e&onomi&all# &onne&te to it or) on te

&ontrar#) ori8inate $rom a tir art# (see) to tat e$$e&t) C2line

[2007] E


21/69


e$$e&ts) or a risB tereo$) on te $un&tion o$ ini&atin8 ori8in as

es&ribe at [94] o$ te resent >u8ment<

9< ;n te &ase ere a tir art#s a su88ests tat tere

is an e&onomi& linB beteen tat tir art# an te rorietor

o$ te trae marB) te &on&lusion must be tat tere is anaverse e$$e&t on te $un&tion o$ ini&atin8 ori8in<

0< ;n te &ase ere te a) ile not su88estin8 te

eFisten&e o$ an e&onomi& linB) is va8ue to su& an eFtent on te

ori8in o$ te 8oos or servi&es at issue tat normall# in$orme

an reasonabl# attentive internet users are unable to etermine)

on te basis o$ te avertisin8 linB an te &ommer&ial messa8e

atta&e tereto) eter te avertiser is a tir art# vis-O-vis

te rorietor o$ te trae marB or) on te &ontrar#)

e&onomi&all# linBe to tat rorietor) te &on&lusion must also

be tat tere is an averse e$$e&t on tat $un&tion o$ te traemarB


22/69


Google France an to i& e ave re$erre save tat it no eFtene to similar

si8ns an marBs an similar 8oos an servi&es<

90< ;n &onsierin8 tis uestion te Court &on$irme (at [17]-[1]! tat te sele&tion b# an

avertiser o$ a si8n as a Be#or in te &onteFt o$ an internet re$eren&in8 servi&e is

te means to tri88er te isla# o$ its avertisement an so oes &onstitute use o$ tesi8n in te &ourse o$ trae in relation to te 8oos or servi&es so avertise even i$ te

si8n oes not aear in te avertisement itsel$< ;t ten &ontinue (at [20]-[22]! tat

te rorietor o$ a trae marB &annot oose te use in tis a# o$ a si8n ienti&al or

similar to its re8istere trae unless all o$ te oter &onitions set out in Arti&le , o$

te +ire&tive an te &ase la o$ te Court are satis$ie an) in arti&ular) in te &ase

o$ a &laim uner Arti&le ,(1!(a!) unless te use o$ te si8n is liable to a$$e&t one o$ te

$un&tions o$ te trae marBH an) in te &ase o$ a &laim uner Arti&le ,(1!(b!) unless

te use o$ te si8n is liable to &ause &on$usion< Weter Arti&le ,(1!(a! or (b! is

ali&able eens uon eter te si8ns in issue are ienti&al it or similar to te

trae marBs te sub>e&t o$ te &laim) an tis is a matter $or te national &ourt to

assess<

91< As $or Arti&le ,(1!(a!) te Court ten restate (at [32]-[37]! its reasonin8 in Google

France> ;n li8t o$ at $ollos) e soul &ite [3,] to [36]:

?3,< ;n rese&t o$ te $un&tion o$ ini&atin8 ori8in) te

Court el tat te uestion eter tat $un&tion is aversel#

a$$e&te en internet users are son) on te basis o$ a

Be#or ienti&al it a marB) a tir art#s a eens in

arti&ular on te manner in i& tat a is resente< =e

$un&tion o$ ini&atin8 te ori8in o$ te marB is aversel#

a$$e&te i$ te a oes not enable normall# in$orme anreasonabl# attentive internet users) or enables tem onl# it

i$$i&ult#) to as&ertain eter te 8oos or servi&es re$erre to

b# te a ori8inate $rom te rorietor o$ te trae marB or an

unertaBin8 e&onomi&all# &onne&te to it or) on te &ontrar#)

ori8inate $rom a tir art# (Google France [2010] E


23/69


92< =urnin8 to Arti&le ,(1!(b!) te Court eFlaine:

?39< =e risB tat te ubli& mi8t believe tat te 8oos or

servi&es in uestion &ome $rom te same unertaBin8 or) as te

&ase ma# be) $rom e&onomi&all#-linBe unertaBin8s)

&onstitutes a liBelioo o$ &on$usion (see) inter alia) Case C-342/7 Llo,# Sc%u%a/rik Me,er & Co> G+/' v .li5sen 'an#el

3V [1] E


24/69


imortant matters unerinnin8 is &on&lusion tat te test to be alie uner Arti&le

,(1!(a! is te same as tat uner Arti&le ,(1!(b!) but it a reverse onus< At tis sta8e

e oul siml# observe tat it is) in our vie) striBin8 tat te Court as in tis

anser uite &learl# &osen not to ra tis istin&tion beteen te test to be alie

in &onsierin8 te e$$e&t on te ori8in $un&tion o$ te trae marB uner Arti&le ,(1!(a!

an tat to be alie in assessin8 te liBelioo o$ &on$usion uner Arti&le ,(1!(b! inte &onteFt o$ Be#or avertisin8 o$ te Bin in issue an a it intene tere to be

su& a rai&al i$$eren&e as a reverse onus ten e believe it rater surrisin8 tat it

i not sa# so<

9,< =e tir e&ision in tis series is tat o$ te Court o$ %usti&e in Case C-,,9/09

;ortaka/in v ;ri+aka/in [2010] EC" ;-663< ere te Court as a8ain &on&erne

it te use in te &onteFt o$ an internet re$eren&in8 servi&e o$ Be#ors te same as

or similar to a re8istere trae marB< =e Court as asBe a number o$ uestions) te

$irst o$ i& as ire&te to te use in su& a servi&e o$ a si8n ienti&al to te trae

marB) an its anser ($rom [26] to [36]! as in all material rese&ts te same as tat

i& it 8ave in Google France an 3ergSpec%te> =e Court ent on to eFlain ($rom[40] to [44]! tat te avertiser use te si8n in relation to its 8oos or servi&es) an

tat as so eter tose 8oos or servi&es ere a&tuall# o$$ere $or sale in te

avertisement itsel$ or onl# on te avertisers ebsite to i& te internet user as

re$erre on &li&Bin8 on te linB) an $urter) tat te resen&e or absen&e in te

avertisement o$ a&tual o$$ers $or sale as not) in 8eneral) a e&isive $a&tor in te

assessment eter te use o$ te si8n as liBel# to ave an averse e$$e&t on te

ori8in $un&tion o$ te trae marB<

96< =e $ourt uestion a8ain &on&erne te use o$ Be#ors similar to te re8istere

trae marB) an te Court ansere it in ver# similar terms to tat i& it a 8iven

in 3ergSpec%te:

?,1< =e risB tat te ubli& mi8t believe tat te 8oos or

servi&es in uestion &ome $rom te same unertaBin8 or) as te

&ase ma# be) $rom e&onomi&all#-linBe unertaBin8s)

&onstitutes a liBelioo o$ &on$usion (see) inter alia) Case C-

342/7 Llo,# Sc%u%fa/rik Me,er & Co> G+/' v .li5sen

'an#el 3V [1] E


25/69


,3< =e 8uian&e set out in [3,] above is) b# analo8#)

ali&able<

,4< ;n te li8t o$ all o$ te $ore8oin8) te anser to te

$irst an $ourt uestions is tat Arti&le ,(1! o$ +ire&tive

9/104 must be interrete as meanin8 tat a trae marB rorietor is entitle to roibit an avertiser $rom avertisin8)

on te basis o$ a Be#or ienti&al it) or similar to) tat

marB) i& tat avertiser as sele&te $or an internet

re$eren&in8 servi&e itout te &onsent o$ te rorietor) in

relation to 8oos or servi&es ienti&al to tose in rese&t o$

i& te marB is re8istere) ere tat avertisin8 oes not

enable avera8e internet users) or enables tem onl# it

i$$i&ult#) to as&ertain eter te 8oos or servi&es re$erre to

b# te a ori8inate $rom te rorietor o$ te trae marB or

$rom an unertaBin8 e&onomi&all# linBe to it or) on te

&ontrar#) ori8inate $rom a tir art#


26/69


it) or similar to) tat trae marB as a Be#or ma#) in te

li8t o$ te &ase-la re$erre to in [67] above) easil#

&orreson to a situation in i& te avertiser &annot &laim

tat it is a&tin8 in a&&oran&e it onest ra&ti&es in inustrial

or &ommer&ial matters) an &annot tere$ore valil# rel# on te

eF&etion rovie $or in Arti&le 6(1! o$ tat +ire&tive<

70< ;n tat re8ar) it must be el) $irst) tat one o$ te

&ara&teristi&s o$ te situation re$erre to in [69] above lies

re&isel# in te $a&t tat te a is liBel# to &ause at least a

si8ni$i&ant se&tion o$ te tar8et ubli& to establis a linB

beteen te 8oos or servi&es to i& it re$ers an te 8oos

or servi&es o$ te trae marB rorietor or ersons autorise to

use tat trae marB< 'e&onl#) in te event tat te national

&ourt $ins tat te a oes not enable avera8e internet users) or

enables tem onl# it i$$i&ult#) to as&ertain eter te

8oos or servi&es re$erre to b# te a ori8inate $rom te traemarB rorietor or $rom a tir art#) it is unliBel# tat te

avertiser &an 8enuinel# &laim not to ave been aare o$ te

ambi8uit# tus &ause b# its a< ;t is te avertiser itsel$) in te

&onteFt o$ its ro$essional strate8# an it $ull Bnole8e o$

te e&onomi& se&tor in i& it oerates) i& &ose a

Be#or &orresonin8 to anoter ersons trae marB an

i&) alone or it te assistan&e o$ te re$eren&in8 servi&e

rovier) esi8ne te a an tere$ore e&ie o it soul

be resente<

71< =aBin8 a&&ount o$ tose $a&tors) it must be &on&luetat) in te situation es&ribe in [,4] an [69] above) te

avertiser &annot) in rin&ile) &laim to ave a&te in

a&&oran&e it onest ra&ti&es in inustrial or &ommer&ial

matters< ;t is) oever) $or te national &ourt to &arr# out an

overall assessment o$ all te relevant &ir&umstan&es in orer to

etermine eter tere ma# be evien&e to >usti$# a &ontrar#

$inin8 (see) to tat e$$e&t) Case C-100/02 Gerolsteiner &

3runnen G+/' & Co> v ;utsc% G+/' [2004] E


27/69


as avin8 been mae in a&&oran&e it onest ra&ti&es in

inustrial or &ommer&ial matters ;n tis imortant e&ision te Court

&onsoliate an eFane uon its earlier reasonin8 in resonse to various uestions

asBe b# te >u8e< # te $irst 8rou o$ uestions te Court as a8ain asBe) in

essen&e) about te roer interretation o$ Arti&le ,(1!(a! o$ te +ire&tive (Arti&le

(1!(a! o$ te "e8ulation! in te &onteFt o$ te use o$ a si8n ienti&al to a trae marB as a Be#or $or te avertisement usin8 an internet re$eren&in8 servi&e o$ 8oos or

servi&es ienti&al to tose $or i& te marB as re8istere< =e Court as also

asBe eter it as relevant (i! tat te avertisement &on&erne as liable to lea

some members o$ te ubli& to believe) in&orre&tl#) tat te avertiser as a member

o$ te trae marB rorietors &ommer&ial netorB) an (ii! tat te rovier o$ te

internet re$eren&in8 servi&e i not ermit trae marB rorietors to revent si8ns

ienti&al to teir trae marBs bein8 sele&te as Be#ors<

0< ;n anserin8 tese uestions te Court be8an b# reiteratin8 (at [34]! tat) in su& a

&ase) te trae marB rorietor as entitle to revent its use onl# i$ it as liable to

a$$e&t one o$ te $un&tions o$ te marB< ;t ten rovie te $olloin8 el$ulelaboration o$ tat rin&ile) eFlainin8) as it i so) te rival submissions avan&e

be$ore it:

?3,< ;nter$lora submits tat tat &onition must) in

a&&oran&e it an alrea# establise bo# o$ &ase la) be

unerstoo as meanin8 tat ara8ra 1(a! o$ Arti&le , o$

+ire&tive 9/104 an o$ Arti&le o$ "e8ulation 40/4 rote&ts

te trae marB rorietor a8ainst an# averse e$$e&t on an# o$

te $un&tions o$ te marB< A&&orin8 to .') oever) su&

an interretation oes not $ollo unambi8uousl# $rom te &ase

la an risBs &reatin8 an imbalan&e as beteen te interest in rote&tin8 intelle&tual roert# an te interest in $ree

&ometition< =e Euroean Commission) $or its art) submits

tat ara8ra 1(a! rote&ts te trae marB rorietor solel#

a8ainst a&ts a$$e&tin8 te marBs $un&tion o$ roviin8 an

ini&ation o$ ori8in< ;n its submission) te trae marBs oter

$un&tions &an) at most) la# a role in te interretation o$

Arti&le ,(2! o$ +ire&tive 9/104 an Arti&le (1!(&! o$

"e8ulation 40/4) i& &on&ern te ri8ts &on$erre b# trae

marBs it a reutation<

36< ;t $ollos $rom te orin8 o$ Arti&le ,(1! o$ +ire&tive9/104 an $rom te tent re&ital in te reamble tereto tat


28/69


te las o$ te .ember 'tates ave been armonise inasmu&

as te eF&lusive ri8t &on$erre b# a trae marB a$$ors te

rorietor o$ te marB ?absolute@ rote&tion a8ainst te use b#

tir arties o$ si8ns i& are ienti&al it tat marB in

relation to ienti&al 8oos or servi&es) ilst) ere tere is not

ientit# on to &ounts) onl# te eFisten&e o$ a liBelioo o$ &on$usion enables te rorietor to rel# su&&ess$ull# on its

eF&lusive ri8t< =at istin&tion beteen te rote&tion

&on$erre b# Arti&le ,(1!(a! an tat rovie $or in Arti&le

,(1!(b! as esouse) so $ar as te Communit# trae marB is

&on&erne) b# te sevent re&ital to) an Arti&le (1! o$)

"e8ulation 40/4<

37< Altou8 te EJ le8islature es&ribe as ?absolute@

te rote&tion a8ainst te unautorise use o$ si8ns ienti&al

it a trae marB in relation to 8oos or servi&es ienti&al it

tose $or i& te marB is re8istere) te Court as ut tates&rition into erse&tive b# statin8 tat) as eFtensive as it

ma# be) te rote&tion &on$erre b# Arti&le ,(1!(a! o$ +ire&tive

9/104 is intene solel# to enable te trae marB rorietor to

rote&t its se&i$i& interests as rorietor o$ te marB) tat is to

sa#) to ensure tat te trae marB &an $ul$il its $un&tions< =e

Court as &on&lue tat te eFer&ise o$ te eF&lusive ri8t

&on$erre b# te trae marB must be reserve to &ases in i&

a tir art#s use o$ te si8n aversel# a$$e&ts) or is liable

aversel# to a$$e&t) te $un&tions o$ te trae marB) in arti&ular

its essential $un&tion o$ 8uaranteein8 to &onsumers te ori8in o$

te 8oos (see Case C-206/01 Arsenal Foot/all Clu/ ;lc v

Ree# [2002] E


29/69


avertisin8 ( L@


30/69


4< =e Court ten ro&eee to 8ive at it es&ribe as interretative 8uian&e in

relation to a trae marBs ori8in) avertisin8 an investment $un&tions in te &onteFt

o$ an internet re$eren&in8 servi&e) be8innin8 it te ori8in $un&tion< At te outset it

reiterate (at [44] to [46]! te 8uian&e it a 8iven in Google France an ;ortaka/in

an i& e ave summarise at [7,] to [77] above< ;t &ontinue (at [47]! tat te

$a&t tat te re$eren&in8 servi&e rovier a not ermitte trae marB rorietors to revent te use o$ a si8n ienti&al it te trae marB as a Be#or as irrelevant< #

&ontrast) te $a&t tat some internet users mi8t be misle mi8t be relevant but as

not ne&essaril# su$$i&ient to establis liabilit#:

?49< # &ontrast) a situation su& as tat es&ribe in

uestion 4(a! [te $a&t tat te si8n as liable to mislea some

members o$ te ubli&] ma# be relevant $or te urose o$

al#in8 te rule set out in Arti&le ,(1!(a! o$ +ire&tive 9/104

an Arti&le (1!(a! o$ "e8ulation 40/4 <

4< ;nee) i$ te re$errin8 &ourts assessments o$ te $a&tsere to so tat .'s avertisin8) isla#e in resonse to

sear&es er$orme b# internet users usin8 te or

?inter$lora@) ma# lea tose users to believe) in&orre&tl#) tat

te $loer-eliver# servi&e o$$ere b# .' is art o$

;nter$loras &ommer&ial netorB) it oul ave to be &on&lue

tat tat avertisin8 oes not allo it to be etermine eter

.' is a tir art# in relation to te rorietor o$ te trae

marB or eter) on te &ontrar#) it is e&onomi&all# linBe to

tat rorietor< ;n tose &ir&umstan&es) te $un&tion o$ te

;N=E"D*G"A trae marB o$ ini&atin8 ori8in oul be

aversel# a$$e&te<

,0< ;n tat &onteFt) as as been observe at [44] o$ tis

>u8ment) te relevant ubli& &omrises reasonabl# ell-

in$orme an reasonabl# observant internet users< =ere$ore)

te $a&t tat some internet users ma# ave a i$$i&ult#

8rasin8 tat te servi&e rovie b# .' is ineenent $rom

tat o$ ;nter$lora is not a su$$i&ient basis $or a $inin8 tat te

$un&tion o$ ini&atin8 ori8in as been aversel# a$$e&te


31/69


6< ;t as ten $or te national &ourt to maBe its assessment) an to o so $rom te

erse&tive o$ te reasonabl# ell-in$orme an reasonabl# observant internet user:

?,3< avin8 re8ar to tat situation an to te oter matters

tat it ma# &onsier relevant) te re$errin8 &ourt ill) in te

absen&e o$ an# 8eneral Bnole8e su& as tat re$erre to at[,1] o$ tis >u8ment) ave to etermine eter or not te use

o$ ors su& as ?.' Dloers@ in an avertisement su& as

te one set out at [1] o$ tis >u8ment is su$$i&ient to enable a

reasonabl# ell-in$orme an reasonabl# observant internet

user o as entere sear& terms in&luin8 te or

?inter$lora@ to tell tat te $loer-eliver# servi&e o$$ere oes

not ori8inate $rom ;nter$lora


32/69


9< A8ain tis is a si8ni$i&ant assa8e $or it sos an are&iation b# te Court tat

internet avertisin8 usin8 Be#ors i& are ienti&al to trae marBs is not an

inerentl# ob>e&tionable ra&ti&e< Gn te &ontrar#) its aim is) in 8eneral) to o$$er to

internet users alternatives to te 8oos or servi&es o$ trae marB rorietors an it is

not te urose o$ trae marBs to rote&t teir rorietors $rom $air &ometition<

< 'imilar 8uian&e as 8iven b# te Court in relation to te investment $un&tion< Dirst)

it eFlaine te nature o$ tis $un&tion:

?62< Wen te use b# a tir art#) su& as a &ometitor o$

te trae marB rorietor) o$ a si8n ienti&al it te trae

marB in relation to 8oos or servi&es ienti&al it tose $or

i& te marB is re8istere substantiall# inter$eres it te

rorietors use o$ its trae marB to a&uire or reserve a

reutation &aable o$ attra&tin8 &onsumers an retainin8 teir

lo#alt#) te tir art#s use must be re8are as aversel#

a$$e&tin8 te trae marBs investment $un&tion< =e rorietor is) as a &onseuen&e) entitle to revent su& use uner Arti&le

,(1!(a! o$ +ire&tive 9/104 or) in te &ase o$ a Communit#

trae marB) uner Arti&le (1!(a! o$ "e8ulation 40/4<

63< ;n a situation in i& te trae marB alrea# en>o#s

su& a reutation) te investment $un&tion is aversel# a$$e&te

ere use b# a tir art# o$ a si8n ienti&al it tat marB in

relation to ienti&al 8oos or servi&es a$$e&ts tat reutation

an tereb# >eoarises its maintenan&e< As te Court as

alrea# el) te rorietor o$ a trae marB must be able) b#

virtue o$ te eF&lusive ri8t &on$erre uon it b# te marB) to revent su& use (Case C-324/* L@


33/69


1< Arti&le ,(1!(a! o$ Dirst Coun&il +ire&tive 9/104/EEC

o$ 21 +e&ember 199 to aroFimate te las o$ te .ember

'tates relatin8 to trae marBs an Arti&le (1!(a! o$ Coun&il

"e8ulation 40/4 o$ 20 +e&ember 13 on te Communit#

trae marB must be interrete as meanin8 tat te rorietor o$

a trae marB is entitle to revent a &ometitor $rom avertisin8 Qon te basis o$ a Be#or i& is ienti&al it te trae

marB an i& as been sele&te in an internet re$eren&in8

servi&e b# te &ometitor itout te rorietors &onsentQ

8oos or servi&es ienti&al it tose $or i& tat marB is

re8istere) ere tat use is liable to ave an averse e$$e&t on

one o$ te $un&tions o$ te trae marB< 'u& use:

R aversel# a$$e&ts te trae marBs $un&tion o$

ini&atin8 ori8in ere te avertisin8 isla#e on

te basis o$ tat Be#or oes not enable reasonabl#

ell-in$orme an reasonabl# observant internet users)or enables tem onl# it i$$i&ult#) to as&ertain

eter te 8oos or servi&es &on&erne b# te

avertisement ori8inate $rom te rorietor o$ te trae

marB or an unertaBin8 e&onomi&all# linBe to tat

rorietor or) on te &ontrar#) ori8inate $rom a tir

art#H

R oes not aversel# a$$e&t) in te &onteFt o$ an

internet re$eren&in8 servi&e avin8 te &ara&teristi&s

o$ te servi&e at issue in te main ro&eein8s) te

trae marBs avertisin8 $un&tionH an

R aversel# a$$e&ts te trae marBs investment

$un&tion i$ it substantiall# inter$eres it te

rorietors use o$ its trae marB to a&uire or reserve

a reutation &aable o$ attra&tin8 &onsumers an

retainin8 teir lo#alt#<

102< =e Court ten &onsiere Arti&le ,(2! o$ te +ire&tive (Arti&le (1!(&! o$ te

"e8ulation! an eFlaine (at [67]! tat it a been asBe) in essen&e) eter tese

rovisions must be interrete as meanin8 tat te rorietor o$ a trae marB it a

reutation as entitle to revent a &ometitor $rom basin8 its avertisin8 on aBe#or &orresonin8 to tat trae marB i& te &ometitor a) itout te

rorietors &onsent) sele&te in an internet re$eren&in8 servi&e< A little later (at [7,]!

it &ontinue tat te re$errin8 &ourt as not seeBin8 8uian&e on te &on&et o$

etriment to te reute o$ te marB (tarnisment!) but rater ise to as&ertain te

&onitions uner i& su& a &ometitor o &ause to be isla#e an avertisin8

linB toars its ebsite must be re8are as &ausin8 etriment to te istin&tive

&ara&ter o$ te marB it te reutation (ilution! or as taBin8 un$air avanta8e o$

te istin&tive &ara&ter or reute o$ tat marB ($ree-riin8!<

103< =e Court ealt $irst it te &on&et o$ ilution an a&&ete (at [7]! tat te use b#

a tir art# in te &ourse o$ trae o$ a si8n ienti&al it or similar to a trae marB it a reutation reu&es te latters istin&tiveness en it &ontributes to turnin8 te


34/69


trae marB into a 8eneri& term< ut) it &ontinue) tis is not ne&essaril# te &ase en

su& a si8n is use as a Be#or:

?90< oever) &ontrar# to ;nter$loras &ontention) te

sele&tion o$ a si8n i& is ienti&al it or similar to a trae

marB it a reutation as a Be#or itin an internetre$eren&in8 servi&e oes not ne&essaril# &ontribute to su& a

eveloment<

91< =us) en te use) as a Be#or) o$ a si8n

&orresonin8 to a trae marB it a reutation tri88ers te

isla# o$ an avertisement i& enables te reasonabl# ell-

in$orme an reasonabl# observant internet user to tell tat te

8oos or servi&es o$$ere ori8inate not $rom te rorietor o$

te trae marB but) on te &ontrar#) $rom a &ometitor o$ tat

rorietor) te &on&lusion ill ave to be tat te trae marBs

istin&tiveness as not been reu&e b# tat use) te latter avin8 merel# serve to ra te internet users attention to te

eFisten&e o$ an alternative rou&t or servi&e to tat o$ te

rorietor o$ te trae marBe&tionable ra&ti&e<

Dair use o$ te si8n i& enables te reasonabl# ell-in$orme an reasonabl#

observant internet user to tell tat te 8oos or servi&es o$$ere ori8inate not $rom te

rorietor o$ te trae marB but $rom a &ometitor oes not ilute te reutation

atta&in8 to te marB<

10,< .u& te same 8uian&e is 8iven in relation to $ree-riin8< =e Court a&&ete tat

ere a &ometitor o$ te rorietor o$ a trae marB it a reutation sele&ts a si8n

ienti&al to te trae marB as a Be#or in an internet re$eren&in8 servi&e) te urose

o$ tat use is to taBe avanta8e o$ te &ara&ter an reute o$ te trae marB) an

$urter) tat te &ometitor ill erive a real bene$it $or i& e as not ai< 'u&

use ill) i$ it is ?itout ue &ause@) amount to an in$rin8ement) an tat is liBel# to

be te &ase i$ te 8oos are mere imitations o$ tose o$ te trae marB rorietor< ut

it ill not be te &ase i$ te 8oos are 8enuine alternatives an te use oes not &ause

ilution or tarnisment or aversel# a$$e&t one o$ te $un&tions o$ te trae marB:

?1< # &ontrast) ere te avertisement isla#e on teinternet on te basis o$ a Be#or &orresonin8 to a trae

marB it a reutation uts $orarQitout o$$erin8 a mere

imitation o$ te 8oos or servi&es o$ te rorietor o$ tat trae

marB) itout &ausin8 ilution or tarnisment an itout)

moreover) aversel# a$$e&tin8 te $un&tions o$ te trae marB

&on&erneQan alternative to te 8oos or servi&es o$ te

rorietor o$ te trae marB it a reutation) it must be

&on&lue tat su& use $alls) as a rule) itin te ambit o$ $air

&ometition in te se&tor $or te 8oos or servi&es &on&erne

an is tus not itout ?ue &ause@ $or te uroses o$ Arti&le

,(2! o$ +ire&tive 9/104 an Arti&le (1!(&! o$ "e8ulation40/4< @


35/69


106< All o$ tis 8uian&e is re$le&te in tese ansers 8iven b# te Court to te se&on set

o$ uestions:

?2< Arti&le ,(2! o$ +ire&tive 9/104 an Arti&le (1!(&! o$

"e8ulation 40/4 must be interrete as meanin8 tat te

rorietor o$ a trae marB it a reutation is entitle to revent a &ometitor $rom avertisin8 on te basis o$ a

Be#or &orresonin8 to tat trae marB) i& te

&ometitor as) itout te rorietors &onsent) sele&te in an

internet re$eren&in8 servi&e) ere te &ometitor tereb# taBes

un$air avanta8e o$ te istin&tive &ara&ter or reute o$ te

trae marB ($ree-riin8! or ere te avertisin8 is etrimental

to tat istin&tive &ara&ter (ilution! or to tat reute

(tarnisment!<

Avertisin8 on te basis o$ su& a Be#or is etrimental to te

istin&tive &ara&ter o$ a trae marB it a reutation (ilution!i$) $or eFamle) it &ontributes to turnin8 tat trae marB into a

8eneri& term< # &ontrast) te rorietor o$ a trae marB it a

reutation is not entitle to revent) inter alia) avertisements

isla#e b# &ometitors on te basis o$ Be#ors

&orresonin8 to tat trae marB) i& ut $orarQitout

o$$erin8 a mere imitation o$ te 8oos or servi&es o$ te

rorietor o$ tat trae marB) itout &ausin8 ilution or

tarnisment an itout) moreover) aversel# a$$e&tin8 te

$un&tions o$ te trae marB it a reutationQan alternative to

te 8oos or servi&es o$ te rorietor o$ tat marBe&te te notion tat it is enou8

tat ?some internet users ma# ave a i$$i&ult# in 8rasin8 tat te servi&e rovie

b# . ' is ineenent $rom tat o$ ;nter$lora@ an mae it er$e&tl# &lear tat te

re$errin8 &ourt as reuire to etermine eter te avertisin8 i or i not

enable te reasonabl# ell-in$orme an reasonabl# &ir&umse&t internet user to tell

tat te $loer-eliver# servi&e o$$ere i not ori8inate $rom ;nter$lora<

109< .r obbs &ontinues tat tis rulin8 is in a&&oran&e it establise rin&iles an

tat) roerl# unerstoo) te &ourt is $a&e it a binar# uestion) not a statisti&al

test< ;t must &onsier te issue be$ore it $rom te erse&tive o$ te avera8e &onsumer o$ te 8oos or servi&es in uestion an) $rom tat erse&tive) anser te uestion

Documents

Interflora v Marks and Spencer - Final Judgment 5 November 2014