EU Competitiveness Council Decides To Reduce Cost Of Trademark Protection

by Ulrika Lomas, for LawAndTax-News.com, Brussels

23 May 2007

The fees of the Office for Harmonization in the Internal Market (Trade Marks and Designs) in Spain (OHIM) are going to be reduced, it was announced on Monday.

This decision was adopted by Member State ministers at a meeting of the EU Competitiveness Council in Brussels earlier this week, which was chaired by German Minister of Justice, Brigitte Zypries.

“This fee reduction strengthens Europe as an economic location. In the future, it will be possible to register trade marks and designs through OHIM at significantly lower cost. This helps all those who wish to protect their rights against unauthorised counterfeiting, not only within their own countries but also throughout all of Europe," stated Ms. Zypries. She continued:

"The Community trade mark system in Europe is a ten-year success story. In the past year alone, 77,500 trade marks were registered in Alicante. Thus the use of the system has far exceeded expectations, which has led to a substantial revenue surplus. We will now distribute this surplus to users of the system.”

Trade marks and designs for goods and services may be registered through OHIM, thereby guaranteeing owners that their goods and services will be protected throughout the entire European Community. In addition, protection remains available under national legal systems.

Monday’s decision comes as a result of a proposal by the German EU Presidency, which has actively supported an immediate and substantial reduction in OHIM fees. It follows a previous reduction of OHIM fees in 2005.

“OHIM’s high standard of quality will not be compromised by the fee reduction. Since its establishment, the Office has financed itself exclusively through its fee revenues, without any subsidies from the EU budget. Its financial management will continue to be governed by the principles of prudence and profitability,” the Federal Justice Minister concluded.

The European Commission will now work out the details of the fee reduction, in particular the exact amount of future fees.

Additionally at its meeting on Monday, the Competitiveness Council decided to commission a study on the further development of the Community trade mark system.

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