2024 saw several landmark trademark cases in the UK that reshaped the intellectual property landscape and provided key lessons for businesses and legal practitioners alike. From disputes involving global brands to rulings with far-reaching implications, the courts were a battleground for defining trademark rights. Here’s a look at the most significant cases, their costs, and a preview of what’s on the horizon in 2025.
1. Sky Ltd. vs. SkyKick
One of the most talked-about cases of 2024 was the UK Supreme Court’s ruling in the dispute between Sky Ltd. and SkyKick. The case revolved around Sky’s registration of trademarks that covered a wide range of goods and services, many of which the company had no intention of using.
The court ruled that Sky’s actions constituted bad faith, invalidating parts of its trademark portfolio. This decision set a precedent, making it even more clear that brand owners must have genuine intentions to use the trademarks they register.
- Cost: The case cost millions in legal fees for both sides, though the exact figures remain confidential.
- Impact: The decision has prompted businesses across the UK to review their trademark registrations to avoid similar challenges.
2. Adidas vs. Thom Browne
Another high-profile case involved sportswear giant Adidas and luxury fashion house Thom Browne. Adidas claimed that Thom Browne’s use of a four-stripe design on its clothing infringed its iconic three-stripe trademark. The High Court ruled in favour of Thom Browne, stating that consumers could distinguish between the two brands’ designs.
- Cost: Adidas reportedly spent millions on the case, including legal fees and the potential loss of trademark rights for certain products.
- Impact: The ruling underscores the importance of distinguishing between similar but non-identical trademarks and the challenges of enforcing design-based trademarks. This case provides essential guidance on ‘position’ trademarks. Adidas does not have a monopoly on stripes used in fashion.
3. Alaska Airlines vs. Virgin Group
In a dramatic showdown, Alaska Airlines was found liable for breaching a trademark license agreement with Virgin Group. The dispute arose from Alaska’s acquisition of Virgin America and its subsequent decision to discontinue the Virgin brand. The UK courts ruled that Alaska Airlines owed minimum annual royalties under the agreement until 2039, even if the brand was no longer in use.
- Cost: Alaska Airlines faced a financial hit of approximately $160 million (£125 million).
- Impact: This case highlighted the enduring power of trademark licensing agreements and the financial risks of failing to honour them. It is so important to get advice when you are looking at either side of signing up to a licensing agreement.
4. Lifestyle Equities CV vs. Santa Monica Polo Club
The Supreme Court delivered a significant judgment in this case involving clothing brands. The issue was whether directors of a company could be held personally liable for the company’s trademark infringement. The court ruled that directors could only be liable if it was proven that they knew the essential facts that made the company an infringer.
- Cost: While financial penalties were not disclosed, the decision clarified legal principles around accessory liability.
- Impact: The ruling has implications for how businesses structure their corporate governance to shield individuals from personal liability.
What’s Ahead in 2025
As we look to 2025, several trademark disputes are already generating a buzz. Here are a few cases to watch:
1. Pfizer vs. Moderna
The ongoing legal battle between pharmaceutical giants Pfizer and Moderna over patent and trademark rights related to COVID-19 vaccines is expected to see significant developments. The UK Court of Appeal is set to rule on key issues, including the validity and infringement of certain patents.
2. Meta vs. Metaverse Innovations
Facebook’s parent company, Meta, is embroiled in a dispute with smaller firms over its rebranding. Several companies have challenged Meta’s trademark applications, claiming prior use of similar terms.
3. Government Consultation on IP and AI
This consultation has the potential to change copyright law in the UK, particularly in relation to data scraping and data and text mining. The government has shown a preference for the removal of protection for computer generated works under s.9(3) of the 1988 Act.
Lessons for Businesses
The trademark cases of 2024 and the anticipated disputes in 2025 underscore several critical lessons for businesses aiming to protect their intellectual property and navigate legal complexities effectively.
1. Conducting Thorough Trademark Searches
Before registering a trademark, it is essential to perform comprehensive searches to ensure there are no overlaps with existing trademarks. Overlapping or similar trademarks can lead to costly disputes, invalidation of rights, or damage to a company’s brand reputation. Businesses should leverage professional advice and advanced search tools to identify potential conflicts during the early stages.
2. Maintaining Genuine Intent
The SkyKick case highlighted the dangers of registering overly broad trademarks without genuine intent to use them. Businesses should define clear purposes for their trademark applications and ensure they align with their product or service offerings. Overreaching registrations not only risk invalidation but can also harm a company’s credibility in legal disputes.
3. Honouring Licensing Agreements
As demonstrated by the Alaska Airlines vs. Virgin Group case, failing to honour licensing agreements can result in significant financial penalties and reputational harm. Businesses must carefully review and adhere to the terms of trademark and licensing agreements, ensuring compliance even when strategic changes, such as rebranding or acquisitions, occur.
4. Structuring Corporate Governance Effectively
The Lifestyle Equities case emphasised the importance of shielding directors and executives from personal liability. Companies should establish clear internal policies, provide thorough training on intellectual property compliance, and implement robust oversight mechanisms to ensure that actions taken on behalf of the company adhere to legal standards.
5. Staying Proactive and Informed
Trademark law is a constantly evolving field, influenced by new rulings, legislative changes, and emerging market trends. Businesses must remain vigilant, keeping abreast of legal developments and proactively addressing potential vulnerabilities in their trademark portfolios. Regular audits of existing trademarks and intellectual property strategies can help mitigate risks and capitalise on opportunities.
AI is changing the business world in so many ways and IP is part of that, cases are being decided and this will provide guidance in this area but this takes time. The legal framework of IP could see huge changes and this all business owners need to be aware of. IP laws will evolve significantly, the patentability of AI-driven inventions and the application of copyright law are likely to be the most significantly affected.
By integrating these practices into their operations, businesses can strengthen their intellectual property protections, reduce litigation risks, and maintain a competitive edge in a crowded and challenging marketplace.
How National Business Register Can Help
We’re here to support you. At National Business Register, we offer tailored advice to help you. Our comprehensive trade mark search services ensure your name’s uniqueness, while our Business Name Protection service safeguards your business name against passing off and unauthorised use. Get in touch with us today for further help with protecting your brand. discuss how we can help with your trade mark searches. Call us on 0800 069 9090 or email Info@nbrg.co.uk.
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