Trade Marks in the Modern World: Drawing the Fine

• text

Thesis

Trade Marks in the Modern World: Drawing the Fine

Jasem Tarawneh

PhD

2009-08-01

University of Manchetser

287

Contents PageTable of Contents…………………………………………………………………………….2Table of Cases …………………………………………………………………………….....6Table of Statues…………………………………………………………………………......13Table of Statuary Instruments………………………………………………………………13Table of European Legislation and Treaties……….………………………….....................13 Table of International Treaties ………………………….…….............................................14Table of Abbreviations……………………………………………………………………...15Abstract………………………………………………….………………………………….17Declaration…………………………………………………………………………….…....18Copyright Statement………………………………………………………………………..18Dedication…………………………………………………………………………………..19Acknowledgements………………………………………………………………………....20Chapter One – Introduction………………………………………………………………21 1. Overview ………………………………………………………………...................212. Research Question …………………………………………………………………253. The Importance of the Research…………………………………………………....274. Research Method …………………………………………………………………..305. Research Structure …………………………………………………………………31Chapter Two - The Historical Foundation and Economic Justification for the Protection of Trade Marks……………………………………………….…………..…..321. Introduction…………………………………………………………………….…...322. What is a Trade mark?...............................................................................................333. Historical Development of Trade Mark Law ………….…………………………...373.1 Trade Marks Law Development Before 1850………………………………….383.2 Trade Marks Development After 1850………………………………………...40 4. The Rationale for Trade Mark Protection ………..…………...................................445. The Economic Justifications for Trade Marks Protection…………………………..455.1 The Information Argument……………………………………………………..48 5.1.1 Trade Marks as Indicators………………………………………....50 5.1.2 Trade Marks as Incentives………………………………………....53 5.1.3 Critical evaluation of the Information Argument………………….565.2 The Intangible Output Argument…………………………………………….62 5.2.1 The Intangible output as a Stimulator………………………………63 5.2.2 Critical Evaluation of the Intangible Output Argument…………....686. The Current Scope of Trade Mark Protection…………………………………....717. Conclusion………………………………………………………………..………77Chapter Three - Trade Mark Infringement without Confusion: Dilution…………..821. Introduction………………………………………………………………………..822. The Rationale for Trade Marks Protection: From Indictors to Stimulators……….84 2.1 The Classical Rationale for Trade Mark Protection: Facilitating Communication without Confusion and Reducing Search costs……………………………………84 2.2 The New Rationale for Trade Mark Protection: A Rationale Based on ‘Salience’………………………………………………………………………….893. The Dilution Concept: The Roots ………………….……………………………..974. The Dilution Concept: The Legislative Application ……………….……………..1004.1 The View from the US ……………………………..……………………..…1014.2 The View from Europe and the UK………………………………………1044.3 What can we learn from Each Other?……………………...............................1104.3.1 The Fame Standard ………………………………………………110 4.3.1.1 Fame in the US……………………………………………115 4.3.1.2 Reputation in Europe and the UK………………………....1174.3.2 The Standard for Proving Dilution 4.3.2.1 The Standard for Proving Dilution in the US…………......118 4.3.2.2The Standard for Proving Dilution in Europe…………...…121 4.3.2.3 The Requirement of Economic Change…………………...123 4.3.3 The Required Effects……………………………………………..…126 4.3.3.1 Detriment to Distinctiveness or Blurring………………….126 4.3.3.2 Detriment to Repute or Tarnishing………………………...127 4.3.3.3 Taking Unfair Advantage or Free-riding………………….1294.3.4 Defences and Due Cause…………………………………………...1344.3.4.1 The Trade Mark Use Requirement and Due Cause………………1355 Conclusion……………………………………………………………………………139Chapter Four - Comparative Advertising and Trade Mark Protection…………….1411. Introduction……………………………………………………………………….1412. What is Comparative Advertising? …………………………………...………….1443. Comparative Advertising and Trade Marks..……………………………………..1453.1 Arguments For and Against Allowing the Use of Trade Marks in Comparative Advertising…………………………………………………………………….....146 3.1.1 Arguments For Prohibiting the Use of Trade Mark in Comparative Advertising……………………………………………………………….147 3.1.2 Arguments for Allowing the Use of Trade Marks in Comparative Advertising………………………………………………………………..1504. The Legal Framework for Comparative Advertising in the UK and Europe……..1564.1 The Legal Framework of Comparative Advertising in the UK……………….157 4.2 The Legal framework for Comparative Advertising in Europe……………….161 4.2.1 The Definition of Comparative Advertising under CAD……………163 4.2.2 Comparative Advertising Conditions under CAD…………………..166 4.2.3 Critical Evaluation of CAD and Its Impact on Trade Marks Protection………………………………………………………………….1815. A Case about Bubbles: The O2 Case……………………………………………...184 5.1. Critical Evaluation of the O2 Case……………………………………………1886. Conclusion…………………………………………………………………………192Chapter Five - Trade Marks Protection and Parallel Imports……………………….1951. Introduction……………………………………………………………………….1952. Definition of Parallel Imports…………………………………………………….1973. Justifications for Parallel Importation…………………………………………….198 3.1. Economic and Policy Arguments For and Against Parallel Imports…………200 3.1.1 Arguments for Parallel Importation…………………………………201 3.1.2 Argument against Parallel Importation……………………………...2044. The legality of Parallel Imports……………………………………………………209 4.1 The Free Movement of Goods Principle………………………………………212 4.2 The Existence Exercise Doctrine and the Specific Subject Matter……………214 4.3 The Exhaustion of Rights Doctrine and the Developments of the Community Exhaustion Principle……..……………………………………………………….2175. International Exhaustion………………………………………………………….220 5.1 The Concept of Consent………………………………………………………226 5.2 The Community Wide Exhaustion Doctrine and Trade Mark Protection: The Justification Remains Unclear……………………………………………………2346. The Legitimate Reasons Exception………………………………………………241 6.1 Repackaging and Relabeling…………………………………………………242 6.1.1 The Bristol-Myers Squibb (BMS) Conditions……………………...246 6.1.2 Critical Evaluation of The Bristol-Myers Squibb (BMS) Conditions………………………………………………………………2517. Conclusion…………………………………………………………………........254Chapter Six – Conclusion………………………………………………………….…2561. Overview………………………………………………………………..……....2562. Findings…………………………………………………………………………257Bibliography………………………………………………………………………........265

Trade marks are information carriers through which direct contact between buyers and sellers is obtained and maintained. In today’s consumer society, which is overburdened with increasingly subtle and artificial product differentiation, most purchasing decisions would be difficult without any feedback mechanism between the products on offer and potential consumers. Accordingly, producers need a symbol that is capable of providing this feedback by conveying the relevant information about the products to consumers, without boring or over-educating them. On the other hand, consumers need a symbol to guide their choice and express their preferences. To convey this information in an effective manner there must be a clear link with the producer, or at least the commercial entity responsible for marketing the product. The most convenient and effective way of establishing this link would be through the product’s trade mark.Nonetheless, modern business and marketing practices are increasingly driving a change in the role of trade marks from consumer protection tools to investment protection tools. This significant change has created a deep tension at the heart of trade mark law and has hindered attempts to formulate a coherent body of law. Accordingly, this thesis examines the causes of this tension by evaluating the current European trade marks protection system and its contributions towards promoting free competition and enhancing social and economic welfare.In addition, this thesis tests the developing national and Community trade mark decisions against economic arguments to judge how these decisions are responding to and dealing with the tension within the law. Moreover, the thesis explores how the law can avoid the problem of over or under protection by establishing a balance between protection of and access to trade marks rights. To achieve this goal the responsible authorities must resolve the fundamental challenges of ‘what do we want to protect in a trade mark?’ and leading on from this, ‘what is the scope of an efficient system of trade marks protection?’ Furthermore, this thesis considers how the trade marks system should deal with the wider economic functions of trade marks and their implications for the specific topics of dilution, comparative advertising and parallel importation. Finally, the thesis concludes by calling for the creation of a balanced trade mark protection system through the application of the legal and economic tools indentified throughout this study.

• Trade Marks, Law and Economics, Europe

• Tarawneh, Jasem

• Faculty of Humanities
• School of Law

uk-ac-man-scw:153533

Tarawneh, Jasem

20th January, 2012, 11:23:03

Tarawneh, Jasem

11th March, 2014, 21:28:19