{"id":6070,"date":"2022-09-15T00:00:03","date_gmt":"2022-09-14T22:00:03","guid":{"rendered":"https:\/\/www.clarkemodet.com\/?p=6070"},"modified":"2023-04-17T12:25:11","modified_gmt":"2023-04-17T10:25:11","slug":"trademark-coexistence-agreements-new-facts-are-not-reason-enough-to-challenge-their-validity","status":"publish","type":"post","link":"https:\/\/oldweb2025.clarkemodet.com\/en\/articles\/trademark-coexistence-agreements-new-facts-are-not-reason-enough-to-challenge-their-validity\/","title":{"rendered":"Trademark coexistence agreements: New facts are not reason enough to challenge their validity"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Barcelona\u2019s Province Court (Intellectual Property section 15) has confirmed in a recent decision (ECLI:ES:APB:2022:6656) that coexistence agreements remain perfectly valid means to settle trademark disputes. Although this position might not surprise many (see e.g., EUIPO\u2019s cases R0590\/1999-2 and R0132\/2002-2 among many others) it is not so frequent to see court decisions where the extent of such validity is discussed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Spanish practice:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>&nbsp;<\/strong>Not many cases involving coexistence agreements end in court. RENE BARBIER Supreme Court leading decision (ES:TS:1988:8806) is frequently cited in this regard. In that case, the Court confirmed the validity of a transactional agreement (i.e., the parties mutually withdraw their claims) against an invalidity action. The inter partes res iudicata effect of a transaction (\u00a7\u00a7&nbsp;&nbsp;1809, 1816 Spanish Civil Code \u2013 SPC), impedes any court to decide on an identical case involving both parties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sometimes the parties challenge the agreement or its effects invoking the Spanish Civil Code rules about the \u201cspiritual\u201d interpretation of the agreements. \u00a0Since this means that what is written must align with the parties\u2019 initial will, abundant interrogations, and further evidence are routine (\u00a7\u00a71282 et seq. SPC).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The case:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For some years, the Italian company BENETTON, and the Ibiza-based company ICE MOUNTAIN (owner of the Ibiza disco OBEACH) discussed the compatibility of the following signs:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/oldweb2025.clarkemodet.com\/wp-content\/uploads\/2022\/09\/imagen-1.png\" alt=\"Trademark coexistence agreements: New facts is not reason enough to challenge their validity\" class=\"wp-image-46201\" width=\"150\" height=\"81\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The parties finally reached an agreement that put an end to the controversy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is worth mentioning that the Spanish company must cease and desist from using the sign and would not obtain any trademark protection for it. At the same time, it should not challenge the validity of Benetton\u2019s trademarks in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sometime later, the Spanish company tried to obtain new trademark registrations that in Benetton\u2019s view were neither compatible \u00a0(the company invoked the agreement and filed administrative oppositions).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A subsequent suit seeking the cancellation for non\u2013use of the Italian trademarks was simultaneously filed before Spanish Courts and EUIPO. Benetton counterclaimed, asking for the enforcement of the prohibition on ICE MOUNTAIN and the immediate withdrawal of all filings and actions brought before EUIPO.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The debate:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u00a0<\/strong>Although ICE MOUNTAIN did not discuss the validity and enforceability of the agreement, it said that since there was a new and different sign,\u00a0the mandatory requirement of an \u201cidentical object\u201d for the res iudicata effect (claimed by Benetton) was not met:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/oldweb2025.clarkemodet.com\/wp-content\/uploads\/2022\/09\/imagen-2.png\" alt=\"Trademark coexistence agreements: New facts is not reason enough to challenge their validity\" class=\"wp-image-46204\" width=\"135\" height=\"125\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">However, the magistrates, in line with the Spanish Supreme Court (ECLI:ES:TS:2010:1874) confirmed that ICE MOUNTAIN\u2019s strategy was unacceptable due to the impossibility of raising issues affecting pre-settlement situations. The obligation assumed by the Spanish company not to initiate actions \u201cin any jurisdiction\u201d which would challenge the registration of the marks bearing BENETTON\u2019s logo was certain and clear and as such, enough to invalidate the suit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Antitrust issues aside, coexistence agreements can be powerful tools to settle lengthy and complex trademark disputes. Some clients \u2013 and even trademark attorneys \u2013 draft easy terms (and even use templates) to quickly avoid opposition procedures. This is an ill practice that can lead to future problems, even years later. A coexistence agreement should be made to last for a long time because building a trademark, a clientele, and a reputation is not a question of days.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Barcelona\u2019s Province Court (Intellectual Property section 15) has confirmed in a recent decision (ECLI:ES:APB:2022:6656) that coexistence agreements remain perfectly valid means to settle trademark disputes. Although this position might not surprise many (see e.g., EUIPO\u2019s cases R0590\/1999-2 and R0132\/2002-2 among many others) it is not so frequent to see court decisions where the extent of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76],"tags":[],"country":[3],"industry":[94],"class_list":["post-6070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","country-es","industry-consumption-fashion-and-distribution"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trademark coexistence agreements: New facts are not reason enough to challenge their validity - ClarkeModet<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trademark coexistence agreements: New facts are not reason enough to challenge their validity - ClarkeModet\" \/>\n<meta property=\"og:description\" content=\"Barcelona\u2019s Province Court (Intellectual Property section 15) has confirmed in a recent decision (ECLI:ES:APB:2022:6656) that coexistence agreements remain perfectly valid means to settle trademark disputes. 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